Question

A, B and C share profits as $1/2$ to A,$1/3$ to B, $1/6$ to C. B retires, and his share is taken up by A and C in the ratio of $1:3$. The new profit sharing ratio will be ________.

• A. $\frac{1}{2}:\frac{1}{6}$
• B. $5:7$
• C. $7:5$
• D. none of these

Answer 1

The correct option is C $7:5$

Old ratio (A, B and C) = 1/2 : 1/3 : 1/6 or 3 : 2 : 1

Share of B = 2/6

Share of B taken by A = (2/6) * (1/4) = 2/24

Share of B taken by C = (2/6) * (3/4) = 6/24

New ratio = Old ratio + Share taken from B

A's new ratio = (3/6) + (2/24) = 14/24

C's new ratio = (1/6) + (6/24) = 10/24

Therefore, new ratio of A and C = 14 : 10 or 7 : 5