Question

A, B & C are partners sharing profits and losses in the ratio of 3:2:1. B retired from the firm. What is the gain ratio of the partners A and C?

• A. 3:2
• B. 3:1
• C. 3:7
• D. 2:1

Answer 1

The correct option is B 3:1

Old Profit sharing ratio ( A, B and C ) = 3 : 2 : 1

New profit sharing ratio ( A and C ) = 3 : 1

Gaining ratio = new ratio - Old ratio

A's gaining ratio = (3/4 ) - ( 3/6 ) = (3/12)

B's gaining ratio = (1/4) = (1/6) = (1/12)

Therefore, gaining ratio of A and C is 3 : 1