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Old partners share in 3:2:1. C retires and A B new ratio is 1:1. What is B gain?

Answer and explanation

Correct answer: ( \frac{1}{6} )

The direct answer is A, one-sixth. First convert the old ratio 3:2:1 into fractions of the whole. The total is 3+2+1=6, so B’s old share is 2/6. After C retires, A and B share the whole business equally, so B’s new share is 1/2, or 3/6. B’s gain equals new share minus old share: 3/6 − 2/6 = 1/6. Therefore option A is correct. Option B, 1/3, is too large; it does not result from the subtraction. Option C, 1/2, is B’s new share, not B’s gain. Option D, zero, would be correct only if B’s share had not increased, but it increased from 2/6 to 3/6. Keep the distinction clear: new share tells the final entitlement, while gaining share tells how much extra was received.

Related tags

GoodwillGaining-RatioNumerical

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