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A, B and C share profits in the ratio 2:5:3. After A retires, the new profit-sharing ratio of B and C becomes 4:3. What will be B’s new share of profit?

Answer and explanation

Correct answer: 4/7

After A’s retirement, B and C share profits in the new ratio 4:3. The total number of parts is 4 + 3 = 7, so B’s new share is 4/7. Option B, 3/7, represents C’s share, while 4/3 is the ratio itself, not B’s share. Exam tip: To find a partner’s share, divide that partner’s ratio term by the sum of all ratio terms.

Related tags

New RatioPartner RetirementProfit Sharing RatioPartner ShareAccountancyNew RatiosReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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