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A, B and C share profits in the ratio 6:7:2. B dies, and A and C acquire B’s share in the ratio 3:4. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 3:2

B’s share consists of 7 parts, which A and C acquire in the ratio 3:4. Thus, A receives 3 parts and C receives 4 parts from B’s share. A’s new share is 6+3=9, while C’s new share is 2+4=6. Therefore, the new ratio is 9:6, which simplifies to 3:2. The option 9:4 is incorrect because C’s original share of 2 parts must also be included. Exam tip: Divide the outgoing partner’s share in the stated acquisition ratio and add each acquired portion to the respective partner’s original share.

Related tags

Partner RetirementPartner DeathNew Profit Sharing RatioGaining RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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