Question

A, B & C partners in a firm sharing profits losses in the ratio of 4:3:2. B decided to retire from the firm. B gives his share to A & C in ratio of 3:1. What is the gain ratio?

• A. 7:2
• B. 3:1
• C. 11:7
• D. 2:1

Answer 1

Answer: (B)

3:1

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

B's share = 3/9

Share of B taken by A = (3/9) * (3/4) = 3/12

Share of B taken by C = (3/9) * (1/4) = 1/12

New share = Old share + Share taken from B

A's new share = (4/9) + (3/12) = 25/36

C's new share = (2/9) + (1/12) = 11/36

Gaining ratio = New artio - Old ratio

A's gaining ratio = (25/36) - (4/9) = 9/36

C's gaining ratio = (11/36 ) - (2/9) = 3/ 36

Therefore, gaining ratio of A and C is 9 : 3 or 3 : 1