Question
Accountancy Question on Reconstitution of Partnership
A, B, and C are partners sharing profits in the ratio of 3:3:4. They decide to share future profits equally. The sacrifice or gain of partners are
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
Answer
A gains 2/30; B gains 3/30; C sacrifices 5/30
Explanation
Solution
The new profit-sharing ratio is 1:1:1 (equal sharing), and based on the previous ratio of 3:3:4, C sacrifices the most.
Hence, the correct answer is Option 4.