R, S and K are partners sharing profits in the ratio 4 : 3 : 2. R retires; S and K decided to share profits in future in the ratio of 5 : 3. Calculate the Gaining Ratio.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 21:11
Gaining Ratio=New Share−Old Share
S’s Gain=New Share−Old Share = 5/8 - 3 /9 = 21/72
K’s Gain=New Share−Old Share = 3/8 - 2/9 = 11/72
Gaining Ratio (S : K)=21 : 11