Question

A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A retires, assuming B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio.

Answer 1

Old Ratio (A, B and C) = `4 : 3 : 2`

New Ratio (B and C) = `2 : 1`

`"Gaining Ratio = New Ratio − Old Ratio"`

`"B's Gain" = 2/3 - 3/9 = 6-3/9 = 3/9`

`"C's Gain" = 1/3 - 2/9 = 3-2/9 = 1/9`

:. Gaining Ratio = `3 : 1`