The old Profit Sharing ratio among M, N and P are 2:2:1. The New profit sharing ratio after N retirement is 3:2. The gaining ratio between M and P will be:

1:1

The correct answer is option 3- 1:1.

Old ratio = 2:2:1 (M, N & P)
N retires
New ratio = 3:2

Gained share = new share - old share

Gained share of M = 3/5 - 2/5
                           = 1/5

Gained share of P = 2/5 - 1/5
                           = 1/5

Gaining ratio = 1/5 :1/5
                   = 1:1