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A, B and C share profits in the ratio 1:4:5. A dies, and B and C acquire A's share equally. What will be the new ratio of B and C?

Answer and explanation

Correct answer: 9:11

The governing method is to add the deceased partner's share to the continuing partners in the stated ratio. The old total is 1 + 4 + 5 = 10, so A's share is 1/10. B and C acquire it equally, receiving 1/20 each. B's new share is 4/10 + 1/20 = 8/20 + 1/20 = 9/20. C's new share is 5/10 + 1/20 = 10/20 + 1/20 = 11/20. Consequently, their new ratio is 9:11. Option B is the old ratio, option C wrongly assumes equal final shares, and option D does not follow the required fraction calculation. Hence option A is correct.

Related tags

Death Of PartnerNew RatioEqual AcquisitionNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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