Question

On 1st April, 2024 A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On this date B retires. The new profit sharing ratio of A and C will be 3 : 2. Gaining ratio will be ______.

Options

• 1 : 2

• 2 : 1

• 1 : 1

• 5 : 2

Answer 1

On 1st April, 2024 A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On this date B retires. The new profit sharing ratio of A and C will be 3 : 2. Gaining ratio will be 1 : 2.

Explanation:

Old ratio of A = `5/10`

Old ratio of C = `2/10`

New ratio A = `3/5`

New ratio C = `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`

= 1 : 2