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mediumMCQCUET Accountancy 2023 20 June Shift 22026Accountancy
1 mark

, , and were partners in a firm with a profit-sharing ratio of . retires and the new profit-sharing ratio between and is settled at . Calculate the gaining ratio of the remaining partners.

  1. A
    3:8
  2. B
    1:3
  3. C
    7:2
  4. D
    1:2

Solution & Step-by-step Explanation

The formula for calculating the Gaining Share of a partner is:

Given data:\begin{itemize}\item Old Ratio of , meaning:

\item New Ratio of and , meaning:

\end{itemize}Let's compute the gaining shares:\begin{itemize}\item \textbf{For A:}

\item \textbf{For C:}

\end{itemize}Comparing their gains:

Practice this question

Try it yourself before checking the explanation above.

, , and were partners in a firm with a profit-sharing ratio of . retires and the new profit-sharing ratio between and is settled at . Calculate the gaining ratio of the remaining partners.
A
3:8
B
1:3
C
7:2
D
1:2

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