Question

Avi and Babi were partners in a firm sharing profit or loss equally. With effect from 1^st April 2021, they agreed to share profits in the ratio of 3 : 4. Due to the change in profit sharing ratio, Avi's gain or sacrifice will be:

Options

• `"Gain" 1/14`

• `"Sacrifice" 1/14`

• `"Gain" 4/7`

• `"Sacrifice" 3/7`

Answer 1

`"Sacrifice" 1/14`

Explanation:

`1/2 - 3/7 = 7/14 - 6/14 = 1/14 ("Sacrifice")`