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A, B and C share profits in the ratio 4:3:3. After C retires, the new profit-sharing ratio of A and B is 5:4. What will be B’s new share of profit?

Answer and explanation

Correct answer: 4/9

After C’s retirement, the given new ratio is A:B = 5:4. The total parts are 5 + 4 = 9, so B’s new share is 4/9. The old ratio is not needed because the new ratio is stated directly. Exam tip: divide the concerned partner’s part in the new ratio by the sum of all parts.

Related tags

New RatioRetirement Of PartnerProfit Sharing RatioPartner ShareAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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