A and B previously shared profits in the ratio 4:5. After the admission of a new partner, the new profit-sharing ratio became 7:6:2. Which of the old partners has gained a larger share of profit?

Correct answer: A

Under the old ratio, A’s share was 4/9 = 20/45, while B’s share was 5/9 = 25/45. Under the new ratio, A’s share is 7/15 = 21/45 and B’s share is 6/15 = 18/45. Therefore, A’s share has increased by 1/45, whereas B’s share has decreased. Hence, A is the correct answer. Exam tip: Convert the old and new shares to a common denominator before comparing them.