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A, B and C share profits in the ratio 5:3:2. C retires, and the new ratio of A and B is fixed at 10:6. What is the simplified new ratio of A and B?

Answer and explanation

Correct answer: 5:3

The given new ratio of A and B is 10:6. Dividing both terms by their greatest common divisor, 2, gives 10 ÷ 2 : 6 ÷ 2 = 5:3. Therefore, the simplified new ratio is 5:3. Although 10:6 represents the same proportion, it is not in its simplest form. In examinations, reduce a ratio to its lowest terms before stating the final answer.

Related tags

SimplificationNew RatioRetirement Of PartnerPartnership AccountingRatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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