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A, B and C have an old profit-sharing ratio of 2:3:5. C retires, and the new ratio of A and B is fixed at 4:6. What is the simplest form of the new ratio of A and B?

Answer and explanation

Correct answer: 2:3

After C’s retirement, the new ratio of A and B is given as 4:6. Dividing both terms by their highest common factor, 2, gives 4:6 = 2:3. Therefore, 2:3 is correct. Option 4:6 is the unsimplified form, not the simplest form. In exams, reduce both terms by their highest common factor.

Related tags

Partner RetirementNew RatioRatio SimplificationProfit Sharing RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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