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

A and B were partners in a firm sharing profits or losses in the ratio of 3 : 1. With effect from 1st January, 2021, they agreed to share profits in the ratio of 2 :1. Due to change in profit sharing ratio, B's gain or sacrifice will be:

A) Gain 1/12

B) Sacrifice 1/12

C) Gain 2/60

D) Sacrifice 3/60

Correct Answer: A

Solution :

[a] Gain 1/12

Hint: Sacrificing Ratio = Old Share - New Share

A=\[\frac{3}{4}-\frac{2}{3}=\frac{9-8}{12}=\frac{1}{12}\] Sacrifice

B=\[\frac{1}{4}-\frac{1}{3}=\frac{3-4}{12}=\left( \frac{1}{12} \right)\] Gain