Question

A,B and C are three partners in a partnership firm sharing profit and loss in the ratio 2:2:1. B retires from the firm on 30th June. His share of profit is purchased by A and C in the ratio of 1:2. What is the new profit sharing ratio of the remaining partners?

• A. 1:1
• B. 2:5
• C. 7:8
• D. 8:7

Answer 1

Answer: (D)

8:7

retire partner B=2/5

remaining ratio=1:2

A's get=2/5*1/3=2/15

A's new ratio=2/5+2/15

=6/15+2/15

=8/15

C's get=2/5*2/3=4/15

C's new ratio=1/5+4/15

=3/15+4/15

=7/15

new ratio is 8:7