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A, B and C share profits in the ratio 3:2:1. C dies, and the new ratio of A and B is 2:1. What is the gaining ratio?

Answer and explanation

Correct answer: 1:0

The original total is 6, so A’s old share is 3/6 = 1/2 and B’s old share is 2/6 = 1/3. After C’s death, the new ratio 2:1 gives A a share of 2/3 and B a share of 1/3. A’s gain is therefore 2/3 − 1/2 = 1/6. B’s gain is 1/3 − 1/3 = 0. Thus, only A acquires an additional share, while B acquires none. The gaining ratio is consequently 1/6:0, which is written as 1:0. A zero in the ratio is meaningful here because one continuing partner does not gain any part of C’s share. Therefore, option A is correct.

Related tags

Gaining RatioDeath Of PartnerNew RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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