Question

A, B and C are partners sharing profits in the ratio of 6 : 5 : 4. Calculate new profit sharing ratios if:

1. A retires
2. B retires
3. C retires

Answer 1

The ratio of A, B and C is 6 : 5 : 4

A = `6/15`

B = `5/15`

C = `4/15`

1. If A retires, the new ratio between B and C is 5 : 4
2. If B retires, the new ratio between A and C is 6 : 4
3. If C retires, the new ratio between A and B is 6 : 5