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Partners A, B and C share profits in the ratio 5:2:3. After C’s retirement, the new profit-sharing ratio of A and B becomes 7:3. What is B’s gaining share?

Answer and explanation

Correct answer: 1/10

B’s old share was 2/10. In the new ratio of 7:3, B’s share is 3/10. Therefore, B’s gaining share = new share − old share = 3/10 − 2/10 = 1/10. Exam tip: calculate a partner’s gain by subtracting the old share from the new share.

Related tags

Partner RetirementGaining RatioNew Profit Sharing RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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