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After the retirement of a partner, the new profit-sharing fractions of two partners are \(\frac{17}{27}\) and \(\frac{10}{27}\), respectively. What will be their new profit-sharing ratio?

Answer and explanation

Correct answer: 17:10

The new ratio is obtained by comparing the partners’ new profit-sharing fractions. Thus, \(\frac{17}{27}:\frac{10}{27}=17:10\), because the common denominator 27 cancels out. Therefore, option A is correct. Exam tip: When fractions have the same denominator, their ratio is simply the ratio of their numerators.

Related tags

New RatioProfit Sharing RatioPartner RetirementRatio ConversionPartnership AccountingNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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