A and B are sharing profit and losses equally with effect from 1st April 2020 they agree to share profit - Accountancy -

Question

A and B are sharing profit and losses equally with effect from 1st
April 2020 they agree to share profit in the ratio of 4 ratio 3
calculate individual partner's gain or sacrifice due to change in
ratio

Ishi · Accepted Answer

Dear Student
â€‹â€‹â€‹â€‹â€‹

A
B

Old Ratio
1/2
1/2

New Ratio
4/7
3/7

Sacrifice/ Gain
1/2 - 4/7
1/2 - 3/7

- 1/14
1/14

Gain
Sacrifice

Regards

	A	B
Old Ratio	1/2	1/2
New Ratio	4/7	3/7
Sacrifice/ Gain	1/2 - 4/7	1/2 - 3/7
	- 1/14	1/14
	Gain	Sacrifice

A and B are sharing profit and losses equally with effect from 1st April 2020 they agree to share profit in the ratio of 4 ratio 3 calculate individual partner's gain or sacrifice due to change in ratio