Question

A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. B retires and his share was taken up by A and C in the ratio of 3 : 2. Find out the new ratio.

Answer 1

Old Profit Sharing Ratio of A, B and C = 4 : 3 : 2

Gaining Ratio = 3 : 2

A's Gain = `3/9 xx 3/5 = 9/45`

C's Gain = `3/9 xx 2/5 = 6/45`

A's New Share = `4/9 + 9/45 = (20 + 9)/45 = 29/45`

B's New share = `2/9 + 6/45 = (10 + 6)/45 = 16/45`

New Profit Sharing Ratio of A and C = 29 : 16