If new ratio is 4:3 and gaining ratio is 2:1 which statement is correct?

Correct answer: Extra shares were acquired in 2:1

The correct answer is Option A, Extra shares were acquired in 2:1. The new ratio 4:3 tells how the continuing partners will divide the entire future profit after reconstitution. The gaining ratio 2:1 tells only the proportion in which the partners acquired the retiring partner's surrendered share. These two ratios answer different questions and need not be equal. Option A is correct because a gaining ratio of 2:1 directly means that the extra shares were obtained in the proportion 2:1. Option B is wrong because the total future profit is divided in the new ratio 4:3, not in the gaining ratio 2:1. Option C is wrong because new ratio and gaining ratio are not always the same; they may happen to look similar in some examples, but their meanings differ. Option D is wrong because a retiring partner does give up a share, and the gaining partners acquire it. A common mistake is to treat every ratio in the question as a profit-sharing ratio. Exam cue: “new” means total future shares; “gaining” means only the additional shares.