X and Y share profits in the ratio of 2:3 in future they decide to sha...
Partnership Ratio Change and Sacrifice
Introduction:
In a partnership, the profit sharing ratio is an essential aspect that determines how the profits will be distributed among the partners. However, partners may decide to change the ratio for various reasons. In such cases, one or more partners may have to sacrifice their share of profits. In this question, we will discuss how X and Y will sacrifice in which ratio when they decide to share profits equally.
Initial Profit Sharing Ratio:
X and Y share profits in the ratio of 2:3. This means that out of the total profits earned by the partnership, X will get 2 parts, and Y will get 3 parts.
Profit Sharing Ratio Change:
Now, X and Y decide to share profits in equal ratios. This means that both partners will get an equal share of profits. Let us assume that the total profits earned by the partnership are P.
- Earlier, X was getting 2/5th of the total profits, and Y was getting 3/5th of the total profits.
- Now, X and Y will get 1/2 of the total profits each.
Sacrifice by X and Y:
When X and Y decide to share profits equally, one partner will have to sacrifice, and the other partner will gain. Let us calculate who will sacrifice and in what ratio.
- X was getting 2/5th of the total profits earlier. Now, X will get only 1/2 of the total profits. This means that X will sacrifice 2/5 - 1/2 = 1/10th of the total profits.
- Y was getting 3/5th of the total profits earlier. Now, Y will also get 1/2 of the total profits. This means that Y will gain 1/10th of the total profits.
Conclusion:
In conclusion, when X and Y decide to share profits equally, X will sacrifice 1/10th of the total profits, and Y will gain 1/10th of the total profits. This is because X was getting a smaller share of profits earlier, and now both partners will get an equal share of profits.
X and Y share profits in the ratio of 2:3 in future they decide to sha...
X= 2÷5-1÷2=-1/10 gainer
y= 3÷5-1÷2=1/10 sacrifiser
so , Y sacrifice by 1/10 share
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