Question

A, B, C are partners sharing profits and losses in the ratio of $4/9:1/3:2/9$. B retires and surrenders $1/9$th of his share in favour of A and remaining in support of C. The new profit sharing ratio will be ______.

• A. $13:14$
• B. $14:13$
• C. $1:8$
• D. $8:1$

Answer 1

The correct option is A $13:14$

Old share (A, B and C) = 4/9 : 1/3 : 2/9 or 4 : 3 : 2

Share of B = 3/9

Share of B taken by A = (3/9) * (1/9) = 3/81

Share of B taken by C = (3/9) * (8/9) = 24/81

New profit sharing ratio = Old ratio + Share taken from B

A's new share = (4/9) + (3/81) = 39/81

C's new share = (2/9) + (24/81) = 42/81

Therefore, new share of A and C = 39 : 42 or 13 : 14