A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. A died, and B and C will share profits in the ratio of 2 : 1. Determine the gaining ratio.
Old Ratio (A : B : C) = 4 : 3 : 2 (ninths). New Ratio (B : C) = 2 : 1.
Gaining Ratio = New Ratio – Old Ratio: B’s gain = 2/3 – 3/9 = 6/9 – 3/9 = 3/9. C’s gain = 1/3 – 2/9 = 3/9 – 2/9 = 1/9.
Gaining Ratio (B : C) = 3 : 1
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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