Q.Distinguish between Sacrificing ratio and Gaining ratio.

After C retires, A and B share profits in the ratio 2 : 1.

A, B and C shared profits 4 : 2 : 3. On C's retirement, unless a new ratio is agreed, the continuing partners simply retain the ratio that existed between themselves (Retirement and Death of a Partner, TN HSC Commerce).

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Unless the agreement gives a different arrangement, retiring partner A's share is absorbed in the continuing partners' old mutual ratio, so B : C stays 2 : 3.

A, B and C shared profits 4 : 2 : 3. When A retires and the question gives no special ratio for taking over A's share, the new ratio between the remaining partners is just their old ratio to one another.

• B's old share = 2/9
• C's old share = 3/9

The ratio between these is 2 : 3, and it stays 2 : 3 after A leaves.

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