Question

A, B and C are partners sharing profit in the ratio of 2 : 2 : 1. C retired. The new Profit Sharing ratio between A and B will be:

Options

• 2 : 1

• 1 : 1

• 3 : 1

• 4 : 1

Answer 1

1 : 1

Explanation:

Due to C's retirement, the A and B ratio will remain at 2 : 2, or 1 : 1.