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 :
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 1:3.
Old ratio is 5:4:3 (P, Q and R)
Q retires
New ratio is 1:1 (P and R)
GAINED SHARE = NEW SHARE - OLD SHARE
Gain of P = 1/2 - 5/12
= (6-5)/12
= 1/12
Gain of R = 1/2 - 3/12
= (6-3)/12
= 3/12
Gaining ratio is = 1/12:3/12
= 1:3