Question

A, B and C are partners with profit sharing ratio 4 :3 :2. B retires and Goodwill Rs. 30,000 was shown in books of account. If A & C share profits of B in 5 : 3,then find the new profit sharing ratio.

• A. $47:25$
• B. $17:11$
• C. $31:11$
• D. $14:21$

Answer 1

The correct option is A $47:25$

Old ratio ( A, B and C) = 4 : 3 : 2

B's profit share = 3/9 or 1/3

A and C decided to take his share in the ratio of 5 : 3

Share of B taken by A = (1/3) * (5/8) = 5/24

Share of B taken by C = (1/3) * (3/8) = 1/8 or 3/24

New profit sharing ratio = Old ratio + Share taken from B

A's new share = (4/9) + (5/24) = 47/72

C's new share = (2/9) + (1/8) = 25/72

Therfore, new profit share = 47 : 25