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Byju's Answer
Standard XII
Accountancy
Calculating Gaining Ratio
A, B, C and D...
Question
A, B, C and D are partners sharing profits in the ratio of 5 : 4 : 3 : 2.
A retires and B, C and D decide to share profits and losses equally in future. What is the gaining ratio ?
A
Equal
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B
2 : 7 : 6
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C
5 : 2 : 8
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D
2 : 5 : 8
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Solution
The correct option is
D
2 : 5 : 8
Old ratio (A, B C and D) = 5 : 4 : 3 : 2
New ratio (B, C, and D) = 1 : 1 : 1
Gaining ratio = New ratio - Old ratio
B's gain = (1/3) - (4/14) = 2/14
C's gain = (1/3) - (3/14) = 5/14
D's gain = (1/3) - (2/14) = 8/14
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