In this I have a problem

Solution:

Case 1.

Calculation of new profit sharing ratio:

A's new ratio= old ratio-sacrificing ratio

= 5/10-1/5

= 3/10

B's ratio= 4/10

C's new ratio= 1/10+1/5

= 3/10

New profit sharing ratio of A:B:C = 3:4:3

Calculation of sacrificing ratio:

A's sacrifice= 1/5

C's gain= 1/5

(Case 2 ) Calculation of New Profit Sharing Ratio, Sacrificing Share & Gaining Share

Old Profit Sharing Ratio of A:B:C = 5:4:1

A's Sacrifice = 1/5 * 1/2 = 1/10

B's Sacrifice = 1/5 * 1/2 = 1/10

C's Gain = A's Sacrifice + B's Sacrifice

= 1/10 + 1/10 = 2/10

A's New Share = Old Share - Sacrifice = 5/10 - 1/10 = 4/10

B's New Share = Old Share - Sacrifice = 4/10 - 1/10 = 3/10

C's New Share = Old Share + Gain = 1/10 + 2/10 = 3/10

New Profit Sharing Ratio of A:B:C = 4:3:3

Sacrificing Share of A =1/10

Sacrificing Share of B=1/10

Gaining Share of C = 2/10

The solutions to your case 1 and case 2 have been provided above.

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