A, B and C are the partners sharing profit and loss in the ratio of 3

1.	A, B and C are the partners sharing profit and loss in the ratio of 3 : 2 : 1. C retires. The new profit and loss sharing ratio of A and B is decided at 7 : 5.
Answer» Old profit and loss ratio for A, B and C = 3 : 2 : 1 After retirement of C, new ratio for A and B = 7 : 5 Now, Gain = New share – Old share A’s gain = \(\frac{7}{12}-\frac{3}{6}=\frac{7-6}{12}=\frac{1}{12}\) ; B’s gain = \(\frac{5}{12}-\frac{2}{6}=\frac{5-4}{12}=\frac{1}{12}\) ∴ Gaining ratio for A and B = 1 : 1 ; New profit-loss ratio for A and B = 7 : 5

A, B and C are the partners sharing profit and loss in the ratio of 3 : 2 : 1. C retires. The new profit and loss sharing ratio of A and B is decided at 7 : 5.

Answer»

Old profit and loss ratio for A, B and C = 3 : 2 : 1

After retirement of C, new ratio for A and B = 7 : 5

Now, Gain = New share – Old share

A’s gain = \(\frac{7}{12}-\frac{3}{6}=\frac{7-6}{12}=\frac{1}{12}\) ;

B’s gain = \(\frac{5}{12}-\frac{2}{6}=\frac{5-4}{12}=\frac{1}{12}\)

∴ Gaining ratio for A and B = 1 : 1 ;

New profit-loss ratio for A and B = 7 : 5