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The new profit-sharing ratio of A and B is 11:9, and B’s old share was 2/5. Find B’s gaining share.

Answer and explanation

Correct answer: \(\frac{1}{20}\)

B’s new share is \(\frac{9}{11+9}=\frac{9}{20}\). B’s old share, \(\frac{2}{5}\), is equal to \(\frac{8}{20}\). Therefore, B’s gaining share = new share − old share = \(\frac{9}{20}-\frac{8}{20}=\frac{1}{20}\). Option C is only B’s old share, not the gain. Exam tip: For a gaining partner, subtract the old share from the new share.

Related tags

Gaining ShareNew Profit Sharing RatioPartner RetirementAccountancy Class 12Ratio CalculationNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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