Question

A, B, C and D are partners sharing profits in the ratio of 5 : 4 : 3 : 2. A retires and B, C and D decide to share the profits and losses equally in future. Calculate the gaining ratio.

Answer 1

Profit sharing Ratio of A, B, C and D is 5 : 4 : 3 : 2

New profit sharing ratio of B, C and D is 1 : 1 : 1

Gaining ratio = New ratio – Old ratio 

B’s gaining ratio = `1/3-4/14=(14-12)/42=2/42`

C’s gaining ratio = `1/3-3/14=(14-9)/42=5/42`

D’s gaining ratio = `1/3-2/14=(14-6)/42=8/42`

∴ Gaining ratio of B, C and D is 2 : 5 : 8.