Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3. They admitted Mohan as a new partner. The profit sharing ratio of Ramesh, Suresh and Mohan will be 2:3:1. Choose the correct option with regards to the gain or sacrifice of old partner-
Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3. They admitted Mohan as a new partner. The profit sharing ratio of Ramesh, Suresh and Mohan will be 2:3:1. Choose the correct option with regards to the gain or sacrifice of old partner-
Solution
Calculation of Sacrifice or Gain:
Sacrificing/Gaining Ratio = Old Share - New Share
For Ramesh:
Old share =
New share =
To find the common denominator between 7 and 3 → 21
Old share =
New share =
Ramesh's Sacrifice =
Since the result is positive, Ramesh has sacrificed his share.
For Suresh:
Old share =
New share =
Common denominator between 7 and 2 → 14
Old share =
New share =
Suresh's Sacrifice =
Since the result is negative, Suresh has gained (not sacrificed) share.
Mohan's share of comes from Ramesh's sacrifice only, as Suresh actually increased his profit share.
Correct Option: Option 1 (Ramesh's sacrifice = 10/42)
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