Question

A, B and C are partners sharing profits in the ratio of 4 : 3 : 1. A retires and his share is taken over by B and C equally. Calculate the new ratio.

Answer 1

A's share will be divided between B and C in the ratio of 1 : 1.

B will gain `1/2 xx4/8 = 4/16=1/4`

C will gain `1/2 xx4/8 =4/16=1/4`

B's old share is `3/8`

C's old share is `1/8`

B's new share = `3/8+1/4=3/8+2/8=5/8`

C's new share = `1/8+1/4=1/8+2/8=3/8`

∴ The new ratio of B and C is 5 : 3.