Question

Anwar and Bashir were partners in the firm sharing profits or losses in the ratio of 7 : 5. With effect from 1st April 2021, they agreed to share profits in the ratio of 5 : 4. Due to the change in profit sharing ratio, what is Bashir's gain or sacrifice?

Options

• `"Gain" 1/36`

• `"Sacrifice" 1/36`

• `"Gain" 1/12`

• `"Sacrifice" 1/12`

Answer 1

`"Gain" 1/36`

Explanation:

= `5/12 - 4/9`

= `15/36 - 16/36`

= `((-1))/36 ("Gain")`