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A, B and C share profits in the ratio 10:5:5. When A retires, B and C continue to share profits in their old ratio. What will be the new profit-sharing ratio of B and C?

Answer and explanation

Correct answer: 1:1

After A retires, only B and C remain as partners. Since they continue in their old ratio, their shares remain 5:5. Simplifying 5:5 gives 1:1, so option A is correct. Exam tip: When the remaining partners continue in the old ratio, reduce their original shares directly to find the new ratio.

Related tags

Retirement Of PartnerNew Profit Sharing RatioOld RatioPartnership AccountsNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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