A, B & C are partners in a partnership firm sharing profits in the ratio of 4:3:2. C retires from the business. A acquired 4/9 of C's share and the balance is acquired by B.
What is the gaining ratio of remaining partners?
Answer & explanation
Correct answer: option 3
C share is 2/9
A acquire 4/9th of 2/9 means 4/9*2/9= 8/81
B acquire= 2/9- 8/81= 10/81
The gaining ratio will be 8/81:10/81 = 8:10 or 4:5
Option 1- 8:10
Option 2 - 4:5