Question

A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A retires, assuming B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio.

Answer 1

The gaining ratio is 3 : 1

Explanation:

Given,

A, B and C were partners sharing profits in the ratio of 4 : 3 : 2

Therefore, the Old Ratio ( A, B and C) = 4: 3: 2

The New Ratio formed is ( B and C ) = 2 : 1

The formula for obtaining the gaining ratio is given as

Gaining Ratio = New Ratio - Old Ratio

B's share  (Gain)

$=\frac{2}{3}-\frac{3}{9}=\frac{6}{9}-\frac{3}{9}=\frac{3}{9}$

C's share (Gain)

$=\frac{1}{3}-\frac{2}{9}=\frac{3}{9}-\frac{2}{9}=\frac{1}{9}$

Therefore, the Gaining Ratio (B and C) = 3 : 1