Question

X, Y and Z have been sharing profits in the ratio of 4 : 2 : 1 Z retires. X and Y take Z’s share equally. New profit sharing ratio will be ______.

Options

• 5 : 2

• 5 : 3

• 9 : 5

• 4 : 2

Answer 1

X, Y and Z have been sharing profits in the ratio of 4 : 2 : 1 Z retires. X and Y take Z’s share equally. New profit sharing ratio will be 9 : 5.

Explanation:

Z’s share = `1/7`

Z’s share × `1/2=1/7xx1/2=1/14`

New ratio = Old ratio + Gain

X’s new ratio = `4/7+1/14=(8+1)/14=9/14`

Y’s new ratio = `2/7+1/14=(4+1)/14=5/14`

New Ratio of x and y = `9/14:5/14`

= 9 : 5