Question

A,B & C Care sharing profits in $4:3:2$ ratio. B retires. In A & C shares profits of B in $5:3$, then find the new profit sharing ratio.

• A. $47:25$
• B. $17:11$
• C. $31:11$
• D. $14:21$

Answer 1

The correct option is A $47:25$

Old ratio (A, B and C) = 4 : 3 : 2

B's share = 3/9

Share of B taken by A = (3/9) * (5/8) = 5/24

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

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

A's new share = (4/9) + (5/24) = 47 : 72

C's new share = (2/9) - (3/24) = 25 : 72

Therefore, new profit sharing ratio of A and C = 47 : 25