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A, B and C share profits in the ratio 9:3:3. A dies, and B and C acquire A’s share in their old mutual ratio. What will be their new ratio?

Answer and explanation

Correct answer: 1:1

The governing rule is that when the remaining partners acquire a deceased partner’s share in their old mutual ratio, their relative proportion does not change. B and C originally have shares 3 and 3, so their old mutual ratio is 3:3, which simplifies to 1:1. A’s 9 parts are transferred between B and C in the same 1:1 relationship; therefore both receive an equal addition. Their individual final shares are equal, even though the total numerical ratio changes from the original three-partner ratio. Thus the new ratio of B and C is 1:1, making option A correct. Option B expresses the same relationship without simplification, while options C and D do not represent the old mutual proportion of B and C.

Related tags

Death Of PartnerOld Mutual RatioNew RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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