A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio on the retirement of A is 3 : 2, what will be the gaining ratio?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 14:11.
Old ratio is 5:2:1 (A, B & C)
A retires
New ratio is 3:2 (B & C)
GAINED SHARE= NEW SHARE - OLD SHARE
Gain of B = 3/5 - 2/8
= (24-10)/40
=14/40
Gain of C = 2/5 - 1/8
= (16-5)/40
= 11/40
Gaining Ratio = 14/40 : 11/40
= 14:11