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A, B and C share profits in the ratio 2:4:4. After B's death, A and C acquire B's share equally. What will be the new profit-sharing ratio of A and C?

Answer and explanation

Correct answer: 2:3

B's profit share was 4 parts. When it is divided equally, A and C each receive 2 additional parts. Thus, A's new share is \(2+2=4\) and C's new share is \(4+2=6\). The new ratio is \(4:6=2:3\). In exams, always reduce the ratio to its simplest form, so 2:3 is preferred over 4:6.

Related tags

New RatioPartner DeathProfit SharingRetirement And DeathNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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