Question

P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be ______.

Options

• 5 : 3

• 1 : 1

• 1 : 3

• 3 : 1

Answer 1

P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be 1 : 3.

Explanation:

Gaining ratio = New ratio - old ratio

Old profit sharing ratio of P, Q, R = 5 : 4 : 3 or `5/12:4/12:3/12`

New sharing ratio of P & R = `1/2:1/2`

Gaining ratio for P = `1/2-5/12=(6-5)/12=1/12`

Gaining ratio for R = `1/2-3/12=6-3/12=3/12`

Gaining ratio of P & R = `1/12:3/12`

∴ Gaining ratio = 1 : 3