Question

A, B and C are partners sharing profits in the ratio of $1/2,2/5$ and $1/10$. B retires and his share is taken up by A and C in the ratio of $1:5$. The new profit sharing ratio of A and C will be __________.

• A. $\frac{1}{2}:\frac{1}{10}$
• B. $13:17$
• C. $17:13$
• D. none of these

Answer 1

Answer: (C)

$17:13$

Old ratio (A, B and C) = 1/2 : 2/5 : 1/10 or 5 : 4 : 1

Share of B = 4/10

Share of B taken by A = (4/10) * (1/6) = 4/60 or 1/15

Share of B taken by C = (4/10) * (5/6) = 20/60

New ratio = Old ratio + Share taken from B

A's new ratio = (5/10) + (4/60) = 34/60

C's new ratio = (1/10) + (20/60) = 26/60

Therefore, new ratio of A and C = 34 : 26 or 17 : 13