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A B and C share profits in 5:5:2. C retires. If A B keep new ratio 7:5 what will be the gaining ratio?

Answer and explanation

Correct answer: 2:0

The direct answer is A, 2:0. The old total is 5+5+2=12. Thus A and B each originally had 5/12. After C retires, A:B is 7:5, whose total is 12, so A’s new share is 7/12 and B’s new share is 5/12. A’s gain is 7/12−5/12=2/12; B’s gain is 5/12−5/12=0. Therefore the gaining ratio is 2:0, equivalently 1:0. Option A is correct. Option B is the new profit-sharing ratio, not the gaining ratio. Option C is the old A:B ratio, not the gains. Option D incorrectly says both gained equally; only A received an increase. A zero gain is written in the ratio because B’s share did not change. Remember: gaining ratio uses increases, not simply the final ratio.

Related tags

Gaining RatioOne GainerNew Ratio

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