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A, B and C share profits in the ratio 4:3:3. C retires, and the new ratio of A and B is 5:4. What is the correct gaining ratio?

Answer and explanation

Correct answer: 14:13

The gaining ratio is calculated by subtracting each continuing partner's old share from the corresponding new share. The old total is 10, so A's old share is 4/10 and B's is 3/10. The new ratio 5:4 has total 9, so A's new share is 5/9 and B's is 4/9. A's gain is 5/9 - 4/10 = 50/90 - 36/90 = 14/90. B's gain is 4/9 - 3/10 = 40/90 - 27/90 = 13/90. The common denominator cancels, producing a gaining ratio of 14:13. Option B is the new ratio, while C is the old ratio and D assumes equal gains. Therefore option A is correct.

Related tags

Gaining RatioNew RatioRetirement CalculationNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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