Question

On 1st April, 2022 A, B and C were partners sharing profits and losses in the ratio of A 5/10, B 3/10 and C 2/10 respectively. On this date B retires. The new profit sharing ratio of A and C will be A 3/5 and C 2/5. Calculate gaining ratio.

Answer 1

Old ratio of A = `5/10`

Old ratio of C = `2/10`

New ratio of A = `3/5`

New ratio of A = `2/5`

Gaining ratio = New ratio – Old ratio

A = `3/5-5/10=(6-5)/10=1/10`

C = `2/5-2/10=(4-2)/10=2/10`

A : C = `1/10:2/10`

A : C = 1 : 2