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A B and C are in 3:4:3. C retires. If A B new ratio is 1:1 which statement is correct?

Answer and explanation

Correct answer: A gained more share

The direct answer is that A gained more share, so option A is correct. The original ratio 3:4:3 has total 10 parts, so A had 3/10 and B had 4/10. C retires, and the remaining total share is 1, which A and B now divide equally. Thus each receives 1/2, or 5/10. A’s gain is 5/10−3/10=2/10. B’s gain is 5/10−4/10=1/10. Since 2/10 is greater than 1/10, A gained more. Option A is correct. Option B is wrong because B gained, but by a smaller amount. Option C is wrong because their gains are not equal. Option D is wrong because both partners gained something when C’s share was redistributed and the new ratio became 1:1. Exam cue: compare new share minus old share, not merely the final shares.

Related tags

Compare GainsNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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