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A, B, and C share profits in the ratio 4:1:5. C retires, and A and B’s new profit-sharing ratio is 3:2. What is their gaining ratio?

Answer and explanation

Correct answer: 2:3

A’s share increases from 4/10 to 3/5, so A gains 6/10 − 4/10 = 2/10. B’s share increases from 1/10 to 2/5, so B gains 4/10 − 1/10 = 3/10. Therefore, the gaining ratio is 2:3.

Related tags

Gaining RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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