Question

P, Q and R were partners sharing profits in the ratio 2 : 2 : 1. Q retires and the new profit sharing ratio of P and R will be 3 : 1. Gaining ratio will be ______.

Options

• 1 : 7

• 2 : 1

• 1 : 2

• 7 : 1

Answer 1

P, Q and R were partners sharing profits in the ratio 2 : 2 : 1. Q retires and the new profit sharing ratio of P and R will be 3 : 1. Gaining ratio will be 7 : 1.

Explanation: 

Gaining Ratio = New Ratio - Old Ratio

P’s Gaining ratio = `3/4-2/5=(15-8)/20=7/20`

R’s Gaining ratio = `1/4-1/5=(5-4)/20=1/20`

Gaining Ratio between P and R = `7/20:1/20`

= 7 : 1