The old Profit Sharing ratio among M , N and P is 2:2:1 . The New profit sharing ratio after N 's retirement is set at 3:2 . The gaining ratio between - CUET Accountancy MCQ CUET Accountancy 2025 13 May Shift 1 2026 | ExamTest.live

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The old Profit Sharing ratio among M, N and P is 2 : 2 : 1 . The New profit sharing ratio after N's retirement is set at 3 : 2 . The gaining ratio between M and P will be:

Solution & Step-by-step Explanation

Gaining ratio is calculated using the formula: Gain = New Share - Old Share Given data:Old Ratio of M, N, P = 2 : 2 : 1 ⟹ M = \frac{2}{5}, N = \frac{2}{5}, P = \frac{1}{5} New Ratio of M and P after N's retirement = 3 : 2 ⟹ M = \frac{3}{5}, P = \frac{2}{5} Calculate Gain for M : Gain of M = \frac{3}{5} - \frac{2}{5} = \frac{1}{5} Calculate Gain for P : Gain of P = \frac{2}{5} - \frac{1}{5} = \frac{1}{5} Comparing gains: Gaining Ratio = \frac{1}{5} : \frac{1}{5} = 1 : 1

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The old Profit Sharing ratio among M, N and P is 2 : 2 : 1 . The New profit sharing ratio after N's retirement is set at 3 : 2 . The gaining ratio between M and P will be:

3 : 2

2 : 1

1 : 1

2 : 2

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