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After the retirement or death of a partner, two partners have new profit-sharing shares of 29/50 and 16/50, respectively. What will be their new profit-sharing ratio?

Answer and explanation

Correct answer: 29:16

The new profit-sharing ratio is obtained by comparing the partners’ shares: 29/50 : 16/50. Since both fractions have the same denominator, the denominator cancels, giving the ratio 29:16. Therefore, option A is correct. Exam tip: when the denominators are equal, compare the numerators directly.

Related tags

New RatioProfit Sharing RatioPartner RetirementPartner DeathRatio ConversionNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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