Question

X, Y and Z are partners sharing profits & losses in the ratio of $4/9$: $1/3$: $2/9$ respectively. Y retires, and his share is taken up by X and Z in the ratio of $13:11$. The new profit sharing ratio will be _________.

• A. $3:5$
• B. $1:1$
• C. $5:3$
• D. none of these

Answer 1

Answer: (C)

$5:3$

Old ratio (X, Y and Z) = 4/9 : 1/3 : 2/9 or 4 : 3 : 2

Y's share = (3/9)

Share of Y taken by X = (3/9) * (13/24) = 13/72

Share of Y taken by Z = (3/9) * (11/24) = 11/72

New ratio = Old ratio + Share taken from Y

X's new share = (4/9) + (13/72) = 45/72

Z's new share = (2/9) + (11/72) = 27/72

Therefore, new profit sharing ratio between X and Z = 45 : 27 or 5 : 3