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A B C share profits in 2:7:6. B retires and A C's new ratio is 3:5. What is C's gain?

Answer and explanation

Correct answer: Twenty seven one hundred twentieth

Direct answer: option A, 27/120. The old ratio of A, B and C is 2:7:6, so total parts are 15. C’s old share is 6/15 = 2/5. After B retires, A and C share in 3:5, so the new total is 8 parts and C’s new share is 5/8. C’s gain means new share minus old share: 5/8 − 6/15. Taking denominator 120, 5/8 = 75/120 and 6/15 = 48/120; difference = 27/120. Option A is therefore correct. Option B, 25/120, results from an incorrect subtraction. Option C, 30/120, also does not equal the exact difference. Option D, 7/15, is not C’s gain; it is unrelated to the calculated change. The supplied answer is consistent. Memory cue: gain = new share − old share.

Related tags

Goodwill-SettlementGaining-RatioNumerical

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