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The partners' new shares are 4/10, 4/10 and 2/10. What is the simplified ratio?

Answer and explanation

Correct answer: 2:2:1

To convert fractional shares into a ratio, first remove the common denominator 10, giving 4:4:2. All three terms have a common factor of 2, so divide each by 2: 4÷2 : 4÷2 : 2÷2 = 2:2:1. Thus option B is the simplest equivalent ratio. Option A is equivalent but not fully simplified; options C and D do not preserve the given proportions.

Related tags

New Profit Sharing RatioAdmissionRatio SimplificationPartnership AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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