Anu, Prabha and Milli are partners. Anu retires. Calculate the future profit sharing ratio of continuing partners and gaining ratio if they agree to acquire her share: (a) in the ratio of 5:3; (b) equally.
New Profit Sharing Ratio = 13:11; Gaining Ratio = 5:3
New Profit Sharing Ratio = 1:1; Gaining Ratio = 1:1
Explanation
This question from the NCERT textbook 'Do it Yourself' section tests the concept of calculating new profit sharing ratio and gaining ratio when a partner retires. Since no original profit sharing ratio is specified for Anu, Prabha and Milli, it is assumed they share profits equally in the ratio of 1:1:1. When Anu retires, her share (1/3) is acquired by the continuing partners (Prabha and Milli) in the specified proportions. The formula used is: New Share = Old Share + Acquired Share. The Gaining Ratio is the ratio in which the continuing partners acquire the retiring partner's share.