Question

A, B & C partners sharing profits losses in the ratio of 4:3:2. B decided to retire from the firm. Calculate the new profit sharing ratio of A & C if B gives his share to A & C in ratio of 3:1.

• A. 7:2
• B. 25:11
• C. 11:7
• D. 2:1

Answer 1

The correct option is B 25:11

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

B's share = 3/9

B's share taken by A = (3/9) * (3/4) = 3/12

B's share taken by C = (3/9) * (1/4) = 1/12

New ratio = Old ratio + Share taken from B

A's new share = (4/9) + (3/12) = 25/36

C's new share = (2/9) + (1/12) = 11/36

Therefore, new share of A and C = 25 : 11