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A, B and C share profits in the ratio 7:5:4. C dies, and A and B acquire C’s share in the ratio 3:1. What is their new ratio?

Answer and explanation

Correct answer: 5:3

The total old shares are 16, so C’s share is 4/16. Dividing it in the ratio 3:1 gives A an additional 3/16 and B an additional 1/16. Their new shares are 10/16 and 6/16, which simplify to 5:3.

Related tags

DeathNew RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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