Question

Select the most appropriate answer from the alternatives given below :

X, Y, and Z are partners sharing profits in the ratio of 5:3:2. If Y retires then new ratio will be ___________.
a) 5:2
b) 5:3
c) 3:2
d) 1:1

Answer 1

X, Y, and Z are partners sharing profits in the ratio of 5:3:2. If Y retires, then the new ratio will be 5:2.

Explanation: The new profit sharing ratio between X and Z can be calculated by simply striking out the share of the retiring partner, i.e. Y. In the given question, Y retires. So, his share will be taken out and the remaining partners will share future profits or losses in the ratio of 5:2.