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A, B and C are partners sharing profits in the ratio of 1/2 : 3/8 : 1/8. Calculate the new ratio if C retires.

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Question

A, B and C are partners sharing profits in the ratio of 1/2 : 3/8 : 1/8. Calculate the new ratio if C retires.

Numerical
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Solution

Old ratio:

A : B : C = `1/2 : 3/8 : 1/8`

Since C retires, A and B continue in their existing ratio:

`1/2 : 3/8`

Multiplying by 8:

4 : 3

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Chapter 4: Retirement or Death of a Partner - PRACTICAL QUESTIONS [Page 4.129]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 4 Retirement or Death of a Partner
PRACTICAL QUESTIONS | Q 76 | Page 4.129
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