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Partner B's old share of profit was \(9/25\), and after reconstitution, his new share became \(11/25\). What is B's gaining share?

Answer and explanation

Correct answer: \(2/25\)

Gaining share = new share − old share. Therefore, B's gaining share is \(11/25-9/25=2/25\). Option C is the old share and option D is the new share, while option B results from an incorrect subtraction. Exam tip: Always subtract the old share from the new share to find the gaining share.

Related tags

Gaining SharePartner ReconstitutionNew RatioOld RatioProfit SharingNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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