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A, B and C share profits in the ratio 9:4:2. A retires, and B and C acquire A’s share in the ratio 5:4. What is the new profit-sharing ratio of B and C?

Answer and explanation

Correct answer: 9:6

The original shares are out of 15 parts, so A’s share is 9/15. B receives 5/9 of A’s share, or 5/15; C receives 4/9, or 4/15. Adding these gains to their original shares gives B: 4/15 + 5/15 = 9/15 and C: 2/15 + 4/15 = 6/15. Thus, their new ratio is 9:6, which simplifies to 3:2.

Related tags

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

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