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A, B and C share profits in the ratio 6:7:5. After B’s death, A and C acquire B’s share in the ratio 4:3. What is the new profit-sharing ratio of A and C?

Answer and explanation

Correct answer: 5:4

The total of the original ratio is 18, so B’s share is 7/18. A receives 4/7 of B’s share (4/18), and C receives 3/7 (3/18). Their new shares are therefore A: 6/18 + 4/18 = 10/18 and C: 5/18 + 3/18 = 8/18. The new ratio is 10:8, or 5:4.

Related tags

Partner DeathNew Profit-Sharing RatioGaining RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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