T.S. Grewal Class 12 Chapter 3 Q.3 - Change in Profit-Sharing Ratio Among the Existing Partners

Question 3

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2025, they decide to share profits and losses equally. Calculate each partner’s gain or sacrifice due to the change in ratio.

Solution

Old Ratio = 5 : 3 : 2; New Ratio = 1 : 1 : 1.

Sacrifice / (Gain) = Old Share – New Share:

• X = 5/10 – 1/3 = 15/30 – 10/30 = 5/30 → Sacrifice 5/30 (1/6)
• Y = 3/10 – 1/3 = 9/30 – 10/30 = –1/30 → Gain 1/30
• Z = 2/10 – 1/3 = 6/30 – 10/30 = –4/30 → Gain 4/30 (2/15)