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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 3 : 2. New profit sharing ratio will be ______.
Options
16 : 29
29 : 16
3 : 2
2 : 3
MCQ
Fill in the Blanks
Solution
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 3 : 2. New profit sharing ratio will be 29 : 16.
Explanation:
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
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Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
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