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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate the new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases: Case 1. C acquires 1/5th share from A. Case 2. C acquires 1/5th share equally from A and B. Case 3. A, B and C will share future profits and losses equally. Case 4. C acquires 1/10th share of A and 1/2 share of B.
Case 1 – C acquires 1/5 from A: A = 5/10 – 1/5 = 3/10; B = 4/10; C = 1/10 + 1/5 = 3/10. New Ratio = 3 : 4 : 3. Sacrifice: A 1/5; Gain: C 1/5.
Case 2 – C acquires 1/5 equally from A and B (1/10 each): A = 5/10 – 1/10 = 4/10; B = 4/10 – 1/10 = 3/10; C = 1/10 + 1/5 = 3/10. New Ratio = 4 : 3 : 3. Sacrificing Ratio A : B = 1 : 1; Gain: C 1/5.
Case 3 – Equal sharing: A = 5/10 – 1/3 = 5/30 (Sacrifice); B = 4/10 – 1/3 = 2/30 (Sacrifice); C = 1/10 – 1/3 = –7/30 (Gain). New Ratio = 1 : 1 : 1. Sacrificing Ratio A : B = 5 : 2; Gain: C 7/30.
Case 4 – C acquires 1/10 of A’s share and 1/2 of B’s share: A’s sacrifice = 5/10 × 1/10 = 1/20; B’s sacrifice = 4/10 × 1/2 = 4/20. A = 5/10 – 1/20 = 9/20; B = 4/10 – 4/20 = 4/20; C = 1/10 + 5/20 = 7/20. New Ratio = 9 : 4 : 7. Sacrificing Ratio A : B = 1 : 4; C gains 5/20.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 3 Q.4 - Change in Profit-Sharing Ratio Among the Existing Partners", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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