Question

X, Y, Z are partners sharing profits and losses in the ratio of $1/2:1/8:3/8$. Z retires and surrenders $4/9$th of his share in favour of X and remaining in support of Y. The new profit sharing ratio will be ______.

• A. $1:2$
• B. $2:1$
• C. $4:5$
• D. $5:4$

Answer 1

The correct option is B $2:1$

Old ratio (X, Y and Z) = 1/2 : 1/8 : 3/8 or 4 : 1 ; 3

Z's share = 3/8

Share of Z taken by X = (3/8) * (4/9) = 12/72

Share of z taken by Y = (3/8) * (5/9) = 15/72

New share = old share + Share taken from Z

X's new share = (4/8) + (12/72) =48/72

Y's new share = (1/8) + (15/72) = 24/72

Therefore, new share of X and Y = 48 : 24 or 2 : 1