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A, B and C share profits in the ratio 5:9:6. C retires, and the new profit-sharing ratio of A and B becomes 4:5. What is B’s gaining share?

Answer and explanation

Correct answer: 19/180

B’s old profit share was \(9/(5+9+6)=9/20\). Under the new ratio 4:5, B’s new share is \(5/(4+5)=5/9\). Therefore, B’s gaining share = new share − old share = \(5/9-9/20=(100-81)/180=19/180\). Exam tip: calculate the gaining share by subtracting the old share from the new share.

Related tags

Gaining SharePartner RetirementNew Profit Sharing RatioAccountancy FractionsNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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