In a firm, A, B and C shares the profit in the ratio 5:3:2. B died. In which ratio A and C are gaining after the death of B?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 5:2.
Old ratio= 5:3:2 (A, B and C)
New Ratio of A & C = 5:2 (When nothing is mentioned, old ratio is considered to be new at retirement)
Gaining Ratio = New ratio - Old ratio
A's Gain = 5/7 - 5/10
= (50-35)/70
= 15/70
B's Gain = 2/7 - 2/10
= (20-14)/70
= 6/70
Gaining ratio = 15/70 : 6/70
= 15:6
= 5:2