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A, B and C share profits in the ratio 6:3:1. C retires and the new ratio of A and B is 5:4. Who has gained more share?

Answer and explanation

Correct answer: B

To determine who gained, compare the old and new fractions rather than comparing the ratio numbers directly. The old total is 10, so A held 6/10 and B held 3/10. After C’s retirement, the new ratio 5:4 totals 9; therefore A receives 5/9 and B receives 4/9. A’s change is 5/9 − 6/10 = 50/90 − 54/90 = −4/90, which is a sacrifice, not a gain. B’s change is 4/9 − 3/10 = 40/90 − 27/90 = 13/90, which is a gain. Thus B alone gains, and B has gained more share. Option A is correct. Options B, C and D contradict the calculated changes.

Related tags

Gain And SacrificeRetirementNew Profit RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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