Question

A, B and C are the partners sharing profit and loss in the ratio of 5 : 3 : 2. B and C sharing profit in the ratio of 40% and 60% after the

Answer 1

After retirement of A,

New ratio for B and C = 2 : 3

Now, Gain = New share – Old share

B’s gain = \(\frac{2}{5}-\frac{3}{10}=\frac{4-3}{10}=\frac{1}{10}\) ;

C’s gain = \(\frac{3}{5}-\frac{2}{10}=\frac{6-2}{10}=\frac{4}{10}\)

∴ Gaining ratio for partners B and C = 1 : 4 ;

New profit-loss ratio for B and C = 2 : 3