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A, B and C share profits in the ratio 8:2:5. After C retires, the new profit-sharing ratio of A and B becomes 3:2. What is A's gaining share?

Answer and explanation

Correct answer: 1/15

A's old share was \(8/15\). Under the new ratio 3:2, A's new share is \(3/5 = 9/15\). Therefore, A's gaining share = new share − old share = \(9/15 - 8/15 = 1/15\). Option B is only A's new share, not the gain. In the examination, calculate the gaining share by subtracting the old share from the new share.

Related tags

Gaining ShareNew RatioRetirement Of PartnerPartnership AccountingProfit Sharing RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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