Question Details

A, B and Care partners sharing profits in the ratio of 3 : 3 : 4. They decide to share the future profits equally. The sacrifice or gain of partners are:

Options

A

A gains 1/30; B gains 1/30; C sacrifices 2/30

B

A gains 2/30; B gains 1/30; C sacrifices 3/30

C

A sacrifices 1/30; B gains 3/30; C sacrifices 2/30

D

A gains 2/30; B gains 3/30; C sacrifices 5/30

Show Answer

Correct Answer :

Option A

A gains 1/30; B gains 1/30; C sacrifices 2/30

Solution :

The correct option is: A gains 1/30; B gains 1/30; C sacrifices 2/30.

To determine the sacrifice or gain of each partner, we compare their old profit-sharing ratios with their new profit-sharing ratios.

The formula to calculate the sacrificing or gaining share for a partner is:
Sacrificing Share=Old ShareNew Share
If the result is positive, the partner has sacrificed a portion of their share. If the result is negative, the partner has gained a portion of the share.

Let us write down the given ratios:
Old profit-sharing ratio of A, B, and C = 3 : 3 : 4
Therefore, the old shares are:
Old Share of A=33+3+4=310
Old Share of B=310
Old Share of C=410

The partners decide to share future profits equally.
New profit-sharing ratio of A, B, and C = 1 : 1 : 1
Therefore, the new shares are:
New Share of A=13
New Share of B=13
New Share of C=13

Now, let us calculate the sacrifice or gain for each partner:

For Partner A:
Share change of A=31013
Taking the common denominator as 30:
Share change of A=91030=130
Since the result is negative, A gains 1/30.

For Partner B:
Share change of B=31013
Taking the common denominator as 30:
Share change of B=91030=130
Since the result is negative, B gains 1/30.

For Partner C:
Share change of C=41013
Taking the common denominator as 30:
Share change of C=121030=230
Since the result is positive, C sacrifices 2/30.

Thus, A gains 1/30, B gains 1/30, and C sacrifices 2/30.

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