A, B, C were partners in a partnership firm their profitsharing ratio was 5:3:2. B retires and the new profitsharing ratio between A and C was 3:2. Calculate gaining ratio.
Correct Answer :
1:2
Solution :
The correct option is 1:2.
Step-by-Step Explanation:
To find the gaining ratio, we first identify the old profit-sharing ratio and the new profit-sharing ratio of the remaining partners.
The old profit-sharing ratio among partners A, B, and C is 5:3:2.
This means:
A's old share =
B's old share =
C's old share =
After B retires, the new profit-sharing ratio between A and C is 3:2.
This means:
A's new share =
C's new share =
The formula to calculate the gaining share of a partner is:
Gaining Share = New Share - Old Share
Let's calculate the gaining share for each remaining partner:
For Partner A:
A's Gaining Share = A's New Share - A's Old Share
A's Gaining Share =
To subtract these fractions, we find a common denominator, which is 10:
A's Gaining Share =
For Partner C:
C's Gaining Share = C's New Share - C's Old Share
C's Gaining Share =
Again, converting to the common denominator of 10:
C's Gaining Share =
Thus, the gaining ratio between A and C is the ratio of their gaining shares:
Gaining Ratio = A's Gain : C's Gain
Gaining Ratio =
Gaining Ratio = 1:2
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