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A, B and C share profits in the ratio 8:6:1. C retires, and A and B continue to share profits in their old ratio. What is the new ratio of A and B in its simplest form?

Answer and explanation

Correct answer: 4:3

After C retires, the mutual profit-sharing ratio of A and B remains their old ratio, 8:6. Dividing both terms by their greatest common divisor, 2, gives 4:3. Therefore, the correct answer is 4:3. Exam tip: When the remaining partners continue in their old ratio, simplify their original ratio directly.

Related tags

New RatioRetirement Of PartnerRatio SimplificationOld RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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