Question

Gini, Bini and Mini were partners sharing profits in the ratio of 4 : 3 : 2. Gini died. Bini and Mini will share profits in the ratio of 2 : 1. Determine the Gaining Ratio.

Answer 1

Old Profit-Sharing Ratio (Gini : Bini : Mini) = 4 : 3 : 2

Bini’s Old Share = `3/9`

Mini’s Old Share = `2/9`

New Profit-Sharing Ratio (Bini : Mini) = 2 : 1

Bini’s New Share = `2/3`

Mini’s New Share = `1/3`

Gaining Share = New Share − Old Share

Bini’s Gain = `2/3 - 3/9`

= `(2 xx 3)/(3 xx 3) - 3/9`

= `6/9 - 3/9`

= `3/9`

Mini’s Gain = `1/3 - 2/9`

= `(1 xx 3)/(3 xx 3) - 2/9`

= `3/9 - 2/9`

= `1/9`

The Gaining Ratio is 3 : 1.