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 B gives his share to A only.

• A. $7:2$
• B. $25:11$
• C. $11:7$
• D. $7:3$

Answer 1

The correct option is A $7:2$

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

B's share = 3/9

B's share taken by A only

New ratio = Old ratio + Share taken from B

A's new ratio = (4/9) + (3/9) = 7/9

C's new share = (2/9) + Nil = 2/9

Therefore, new ratio of A and C = 7 : 2