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  5. Change in Profit Sharing Ratio Among Existing Partner

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

  • question_answer
    A and B were partners in a firm sharing profits equally. With effect from 1st April, 2020, they decided to share profits in the ratio of 4 : 3. Due to change in profit-sharing ratio, A's gain or sacrifice will be:

    A) gain 1/14    

    B) sacrifice 1/14

    C) gain 3/4

    D) sacrifice 3/7

    Correct Answer: A

    Solution :

    [a] gain 1/4
    Hint: Sacrificing/(Gaining) Share  Old Share - New Share
    A= \[\frac{1}{2}-\frac{4}{7}=\frac{7-8}{14}=\left( \frac{1}{14} \right)\]Gain
     


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