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 and C in the original ratio of A & C. What is the gain ratio?

• A. 4:2
• B. 25:11
• C. 11:7
• D. 2:1

Answer 1

The correct option is D 2:1

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

B's share = 3/9

Share of B taken by A = (3/9) * (4/6) = 2/9

Share of B taken by C = (3/9) * 2/6) = 1/9

New share = Old share + Share taken from B

A's new share = (4/9) + (2/9) = 6/9 or 2/3

C's new share = (2/9) + (1/9) = 3/9 or 1/3

Gaining ratio = New artio - Old ratio

A's gaining ratio = (6/9) - (4/9) = 2/9

C's gaining ratio = (3/9) - (2/9) = 1/9

Therefore, gaining ratio of A and C is 2 : 1