A, B, and C were in partnership, sharing profits in the ratio of 3:2:1 respectively, B retires and the new profit sharing ratio between A and C is 3:2. The gaining ratio is:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 3:7.
Old ratio = 3:2:1 (A, B and C)
B retires
New ratio = 3 : 2 (A & C)
Gained share = New share - Old share
A's gained share = 3/5 - 3/6
= (18-15)/30
= 3/30
B's gained share = 2/5 - 1/6
= (12-5)/30
= 7/30
Gaining ratio = 3/30 : 7/30
= 3:7