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A and B are continuing partners. A’s gain is 1/6 and B’s gain is 1/3. What is their gaining ratio?

Answer and explanation

Correct answer: 1:2

The gaining ratio expresses the relative portions in which continuing partners acquire the retiring partner’s share. The given gains are 1/6 for A and 1/3 for B, so their ratio is 1/6 : 1/3. To remove the denominators, multiply both terms by 6: (1/6 × 6) : (1/3 × 6) = 1:2. Therefore B gains twice as much as A. Option A is correct. Option B reverses the ratio and would incorrectly state that A gains twice as much as B. Options C and D do not arise from the given fractions. This calculation concerns the actual gains, not the partners’ old profit-sharing ratio, so no additional information is needed.

Related tags

Gaining RatioGoodwill SettlementRatio CalculationRetirement Of PartnerReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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