Lal, Bal and Pal were partners sharing profit & loss in ratio 5 : 3 : 2. Bal retired, Lal and Pal decided to share future profit & loss in the ratio 2 : 1. Determine the Gaining ratio between Lal and Pal :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - 5 : 4.
Old ratio = 5:3:2 (Lal, Bal and Pal)
New ratio = 2:1 (Lal and Pal)
GAIN SHARE = New share - Old share
Gain of Lal = 2/3 - 5/10
= (20-15)/30
= 5/30
Gain of Pal = 1/3 - 2/10
= (10-6)/30
= 4/30
Gaining ratio = 5/30 : 4/30
= 5:4