A, B, C were partners in a partnership firm their profit sharing ratio was 5 : 3 : 2. B retires and the new profit sharing ratio between A and C was 3 : 2. Calculate gaining ratio.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) - 1 : 2.
Old ratio = 5 : 3 : 2 (A, B, C)
B retires
New ratio = 3 : 2 ( A & C)
Gained share = New share - Old share
Gain of A = 3/5 - 5/10
= (6-5)/10
= 1/10
Gain of C = 2/5 - 2/10
= (4-2)/10
= 2/10
Gaining ratio = 1/10 :2/10
= 1:2