Question

A,B & Care partners sharing profits losses in the ration of $4:3:2$. B decided to retire form the firm. Calculate the new profit sharing ratio of A & C if 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

Answer: (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