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After retirement, the new profit-sharing shares of two remaining partners are \(\frac{2}{7}\) and \(\frac{5}{7}\), respectively. What will be their new profit-sharing ratio?

Answer and explanation

Correct answer: 2:5

When the denominators of two partners’ shares are the same, their ratio is obtained directly from the numerators. Thus, \(\frac{2}{7}:\frac{5}{7}=2:5\), so option A is correct. Option B reverses the order of the partners. Exam tip: For fractions with a common denominator, compare the numerators directly to form the ratio.

Related tags

New RatioProfit Sharing RatioPartner RetirementRatio ConversionAccountancyNew RatiosReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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