Question

A,B,C are partners in a firm sharing profits and losses in the ratio of 1:1:1. On B’s retirement continuing partners decided to share profits in the ratio of 4:3. Calculate gain ratio

Answer 1

Answer:

Gain Ratio =

A : C = 5 : 2

Explanation:

Given :

Old Ratio :

A : B : C = 1 : 1 : 1

• A's Share = $\dfrac{1}{3}$

• B's Share = $\dfrac{1}{3}$

• C's Share = $\dfrac{1}{3}$

On B’s retirement continuing partners decided to share profits in the ratio of 4:3

To find :

Gain Ratio

Solution :

Gain Ratio = New Profit Sharing Ratio - Old Profit Sharing Ratio

• A's Gain =

$\longrightarrow \: \dfrac{4}{7} - \dfrac{1}{3}$

$\longrightarrow \: \dfrac{5}{21}$

• C's Gain =

$\longrightarrow \: \dfrac{3}{7} \: - \: \dfrac{1}{3}$

$\longrightarrow \: \dfrac{2}{21}$

Gain Ratio =

• A : C

• $\dfrac{5}{21} : \dfrac{2}{21}$

$\longrightarrow \: 5 : 2$

∴ Gain Ratio =

A : C = 5 : 2

Answer 2

Required answer:-

Question:

• A,B,C are partners in a firm sharing profits and losses in the ratio of 1:1:1. On B’s retirement continuing partners decided to share profits in the ratio of 4:3. Calculate gain ratio.

Solution:

Given,

• Ratio of share of A , B and C of profits and loses = 1:1:1

To find:

• Gain ratio

Step by step explaination:

First we have to calculate the old ratio.

That is,

A : B : C = 1 : 1 : 1

Then,

◍$A's \: share \: will \: be \: \dfrac{1}{3}$

◍$B's \: share \: will \: be \: \dfrac{1}{3}$

◍$C's \: share \: will \: be \: \dfrac{1}{3}$

After recruitment of B their decided profit ratio will is 4:3 .

So, now

◍A's Gain :

$\dfrac{4}{7} - \dfrac{1}{3}$

$\dfrac{5}{21}$

◍C's Gain :

$\dfrac{3}{7} - \dfrac{1}{3}$

$\dfrac{2}{21}$

____________________________________

Gain ratio :

Gain ratio = New profit ratio - Old profit ratio

So,

A : C

$\dfrac{5}{21} : \dfrac{2}{21}$

5 : 2

_____________________________________

Answer :

Gain ratio will be :-

A : C = 5 : 2