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Question

A,B and C are three partners sharing profit and loss in the ratio of 3:2:1. B retire from the firm.If B's share of profit is purchased by C. What will be new profit sharing ratio?

A
1:2
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B
2:1
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C
3:1
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D
3:2
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Solution

The correct option is C 3:1
retire partner B=2/6
remaining ratio=3:1
A's get=2/6*3/4=6/24
A's new ratio=3/6+6/24
=12/24+6/24
=18/24
C's get=2/6*1/4=2/24
C's new ratio=1/6+2/24
=6/24
new ratio is 18/24:6/24=3:1

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