The old profit sharing ratio among A, B and C were 2 : 2 : 1. The new Profit sharing ratio after B's retirement is 3 : 2. The gaining ratio is-
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 1 : 1.
Old ratio = 2:2:1 (A, B & C)
B retires
New ratio = 3 : 2
Gained share = new share - old share
Gained share of A = 3/5 - 2/5
= 1/5
Gained share of C = 2/5 - 1/5
= 1/5
Gaining ratio = 1/5 :1/5
= 1:1