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
• B. 2:1
• C. 3:1
• D. 3:2

Answer 1

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