**Solution**

**Old Ratio (A and B) = 1 : 1****New Ratio (A and B) = 4 : 3****Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio****A’s share = (Gain)****B’s share = (sacrifice)****∴ A’s Gain = 1/14 B’s Sacrifice = 1/14**

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## A and B are sharing profits and losses equally. With effect from 1st April, 2019, they agree to share profits in the ratio of 4 : 3. Calculate individual partner’s gain or sacrifice due to the change in ratio.

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**Solution**

**Old Ratio (A and B) = 1 : 1****New Ratio (A and B) = 4 : 3****Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio****A’s share = (Gain)****B’s share = (sacrifice)****∴ A’s Gain = 1/14 B’s Sacrifice = 1/14**