Question

A,B and C three partners sharing profit and loss in the ratio of 3:2:1. B retires from the firm. If A and C purchase the share of retiring partners equally. What is the new profit sharing ratio ?

• A. 2:1
• B. 1:2
• C. 1:3
• D. 3:1

Answer 1

The correct option is A 2:1

B's ratio =2/6

A and C take this share in 1:1

A will get = 2/6*1/2=2/12

A's new ratio = 3/6+2/12=8/12

C Will get =2/6*1/2=2/12

C's new ratio=1/6+2/12=4/12

then new ratio =8/12:4/12

=2:1