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A, B and C share profits in the ratio 4:3:2. C retires, and A and B acquire C’s share equally. What is the new ratio of A and B?

Answer and explanation

Correct answer: 5:4

The total old shares are 9, so C’s share is 2/9. Each of A and B acquires 1/9. Their new shares are A: 4/9 + 1/9 = 5/9 and B: 3/9 + 1/9 = 4/9. Thus, the new ratio is 5:4.

Related tags

RetirementNew RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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