Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3 . They admitted Mohan as a new pa

Question

Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3 . They admitted Mohan as a new partner. The new profit sharing ratio of Ramesh, Suresh, and Mohan is determined to be 2:3:1 . Choose the correct option indicating the sacrifice or gain of the old partners:

Accepted Answer

The formula to calculate Sacrifice or Gain is:

Sacrifice = Old Share - New Share

Given data:

Old Ratio = 4 : 3 ⟹ Ramesh = \frac{4}{7}, Suresh = \frac{3}{7}

New Ratio = 2 : 3 : 1 ⟹ Ramesh = \frac{2}{6}, Suresh = \frac{3}{6}, Mohan = \frac{1}{6}

Let's compute for Ramesh:

Ramesh’s Sacrifice = \frac{4}{7} - \frac{2}{6} = \frac{( 4 \times 6 ) - ( 2 \times 7 )}{42} = \frac{24 - 14}{42} = \frac{10}{42}

Let's compute for Suresh:

Suresh’s Sacrifice = \frac{3}{7} - \frac{3}{6} = \frac{( 3 \times 6 ) - ( 3 \times 7 )}{42} = \frac{18 - 21}{42} = - \frac{3}{42} (Gain)

Thus, Ramesh sacrifices

\frac{10}{42}

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Ramesh and Suresh are partners in a firm sharing profits in the ratio of $4 : 3$ . They admitted Mohan as a new partner. The new profit sharing ratio of Ramesh, Suresh, and Mohan is determined to be $2 : 3 : 1$ . Choose the correct option indicating the sacrifice or gain of the old partners:

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Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3. They admitted Mohan as a new partner. The new profit sharing ratio of Ramesh, Suresh, and Mohan is determined to be 2:3:1. Choose the correct option indicating the sacrifice or gain of the old partners: