L, N and T are partners sharing profits in the ratio of . If N retires, what would be the gaining ratio of L & T?
- A
- B
- C
- D
Solution & Step-by-step Explanation
The old profit-sharing ratio is .When partner retires, and no explicit new sharing metrics or sacrifice deals are specified, the remaining partners and continue to gain and share in their relative old proportions.By striking out 's share (), the relative ratio between and remains . Therefore, the gaining ratio is .