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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 is 3:2. What is B’s gaining share?

Answer and explanation

Correct answer: 4/15

B’s old share was \(2/(8+2+5)=2/15\). Under the new ratio of 3:2, B’s share is \(2/5=6/15\). Therefore, B’s gaining share is \(6/15-2/15=4/15\). The value 2/5 is B’s new share, not the gain. Exam tip: Gaining share = New share − Old share.

Related tags

Gaining ShareNew RatioRetirement Of PartnerPartnership AccountingNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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