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A B and C share 7:1:2. C retires and A B new ratio is 4:1. What will be the gaining ratio?

Answer and explanation

Correct answer: 1:1

A, B, and C originally share profits in the ratio 7:1:2. The total parts are 10, so A’s old share is 7/10 and B’s old share is 1/10. After C retires, A and B share the remaining profit in the new ratio 4:1. Thus A’s new share is 4/5 and B’s new share is 1/5. A’s gain is 4/5 − 7/10 = 8/10 − 7/10 = 1/10. B’s gain is 1/5 − 1/10 = 2/10 − 1/10 = 1/10. Both gain equally, so the gaining ratio is 1:1 and option A is correct.

The retired partner’s share is redistributed through the increase in the continuing partners’ shares. Since A and B each gain 1/10, their relative gains are equal. The new ratio 4:1 itself is not the gaining ratio; it shows their final shares, not the amounts by which their shares increased. Therefore, option A follows directly from comparing old and new shares.

Related tags

Gaining RatioEqual GainDeath

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