Question

A, B & C partners in a firm sharing profits and losses in the ratio of 4:3:2. B decided to retire from the firm B gives his share to A only. What is the gain ratio?

• A. 1/3:0
• B. 1/9:0
• C. 11:7
• D. 2:1

Answer 1

The correct option is A 1/3:0

Old share ( A, B and C ) = 4: 3 : 2

B's share = 3/9

Share of B taken by A only = 3/9

New profit sharing ratio of A = Old share + Share taken from B

= (4/9) + (3/9)

= (7/9)

Gaining ratio = New share - Old share

= (7/9) - ( 4/9)

= ( 3/9)

Therefore, gaining ratio of A is 1/3:0

In the given question, C is not getting any share of B at his retirement, therefore only A will gain here.