Question Details

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.

Options

A

3:8

B

1:3

C

7:2

D

1:2

Show Answer

Correct Answer :

Option D

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 = 510
B's old share = 310
C's old share = 210

After B retires, the new profit-sharing ratio between A and C is 3:2.
This means:
A's new share = 35
C's new share = 25

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 = 35-510
To subtract these fractions, we find a common denominator, which is 10:
A's Gaining Share = 610-510=110

For Partner C:
C's Gaining Share = C's New Share - C's Old Share
C's Gaining Share = 25-210
Again, converting to the common denominator of 10:
C's Gaining Share = 410-210=210

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 = 110:210
Gaining Ratio = 1:2

Unlock Our Free Library

Access expert-curated educational resources and study materials—completely free.

Ask AI Tutor
5 left
Q1 View Question & Options
AI Tutor is solving this question...
Reading question context & options...