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A, B and C share profits in the ratio 12:8:4. When C retires, A and B continue to share profits in their old ratio. What will be the new simplified ratio of A and B?

Answer and explanation

Correct answer: 3:2

After C retires, C’s share is removed, leaving A:B = 12:8. Divide both terms by their greatest common divisor, 4: 12÷4 : 8÷4 = 3:2. Therefore, 3:2 is correct. Remember that 12:8 represents the same ratio but is not in its simplest form.

Related tags

New RatioPartner RetirementRatio SimplificationNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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