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A B C share profits in 5:5:2. B retires and A C's new ratio is 3:2. What will be the gaining ratio?

Answer and explanation

Correct answer: 11:14

The direct answer is A, 11:14. The old total is 5+5+2 = 12, so A had 5/12 and C had 2/12 = 1/6. The new A:C ratio is 3:2, whose total is 5, so A now has 3/5 and C now has 2/5. A’s gain is 3/5 − 5/12 = 36/60 − 25/60 = 11/60. C’s gain is 2/5 − 1/6 = 12/30 − 5/30 = 7/30 = 14/60. Since both gains have denominator 60, their gaining ratio is 11:14. Option A is correct. B is the new ratio, not the gain. C is the old A:C ratio, not the gain. D incorrectly treats both gains as equal. Memory cue: calculate each partner’s new share minus old share, then compare the gains.

Related tags

Goodwill-SettlementGaining-RatioHard

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