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  5. Change in Profit Sharing Ratio Among Existing Partner

12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank MCQs - Reconstitution Of a Partnership Firm : Change in Profit Sharing Ratio

  • question_answer
    A, B and C are partners in a firm sharing profits and losses in 5:3:2 ratio. They decided to share future profits and losses in 3 : 2 :1. Each partner's gain/sacrifice due to change in the ratio will be:

    A) A Sacrifice-1/30, B Gain-1/30, C-Nil

    B) A Gain-1/30, B-Nil, C Sacrifice-1/30

    C) A-Nil, B Sacrifice-1/30, C Gain-1/30

    D) A-Nil, B Gain-1/30, C Sacrifice-1/30

    Correct Answer: D

    Solution :

    [d] A-Nil, B Gain-1/30, C Sacrifice-1/30
    Hint: Sacrificing Ratio = Old Share - New Share
    A=\[\frac{5}{10}-\frac{3}{6}=\frac{15-15}{30}\]=Nill
    B=\[\frac{3}{10}-\frac{2}{6}=\frac{9-10}{30}=\left( \frac{1}{30} \right)\] Gain
    C=\[\frac{2}{10}-\frac{1}{6}=\frac{6-5}{30}=\frac{1}{30}\]Sacrifice


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