Ashok, Bhim and Chetan are sharing profits and losses in the ratio of 5: 3: 2. With effect from 1st April, 2022, 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.

SOLUTION

Old Ratio (Ashok, Bhim and Chetan) = 5: 3: 2
New Ratio (Ashok, Bhim and Chetan) = 5: 2: 3

Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Ashok’s share = 5 / 10 – 5 / 10 = Nil
Bhim’s share = 3 / 10 – 2 / 10 = 1 / 10 (sacrifice)
Chetan’s share = 2 / 10 – 3 / 10 = – 1 / 10 (Gain)

∴ Chetan’s Gain = – 1 / 10
Bhim’s Sacrifice = 1 / 10


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