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A, B and C share profits in the ratio 1:3:6. C retires, and the new profit-sharing ratio of A and B is fixed at 2:3. What is B's gain?

Answer and explanation

Correct answer: 3/10

B's old share was 3/(1+3+6) = 3/10, while his new share is 3/(2+3) = 3/5 = 6/10. Therefore, B's gain = new share − old share = 6/10 − 3/10 = 3/10. Option B represents B's new share, not his gain. Exam tip: calculate gain by subtracting the old share from the new share.

Related tags

Partner RetirementGain CalculationNew RatioProfit Sharing RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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