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If the remaining partners acquire the retiring partner’s share in the ratio 3:1, what will be the gaining ratio?

Answer and explanation

Correct answer: 3:1

The gaining ratio shows the relative proportions in which the continuing partners obtain the outgoing partner’s profit share. The question explicitly states that the retiring partner’s share is acquired in the ratio 3:1. Therefore, the first continuing partner gains three parts for every one part gained by the second continuing partner, and the gaining ratio is 3:1. The old ratio would be relevant only if the question said that the share was acquired in the old proportion. The new ratio describes final profit entitlement, not necessarily the proportions of the gain. Option B reverses the stated order, while options C and D introduce ratios not supplied in the question. Hence option A is correct.

Related tags

Gaining RatioRetirementProfit Share AcquisitionNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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