Question

$A,B$ and $C$ are partners sharing profits in the ratio of $\frac{1}{2},\frac{2}{5}$ and $\frac{1}{10}$. Find the new ratio of the remaining partners if $C$ retires.

Answer 1

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

As there is no information given as how A and B are acquiring C's profit share after his retirement, so the new profit sharing ratio between A and B is calculated by just crossing out C's share. That is, the new ratio becomes 5:4.

New profit ratio (A and B) = 5:4