Numerical
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner's gain or sacrifice due to the change in ratio.
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Solution
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 5 : 2 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
X's share = `5/10 - 5/10 = "Nil"`
Y's share = `3/10 - 2/10 = 1/10` (sacrifice)
Z's share = `2/10 - 3/10 = (-1)/10` (gain)
∴ Z’s Gain = 1/10
Y’s Sacrifice = 1/10
Concept: Retirement and Death of a Partner - Sacrificing Ratio
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