A, B and C are partners in a business, sharing profit in the ratio 5 : 4 : 3.…
2022
A, B and C are partners in a business, sharing profit in the ratio 5 : 4 : 3. B retires from the partnership and his share is taken by A and C in the ratio 2 : 1. What is the new profit sharing ratio between A and C?
- A.
19 : 15
- B.
21 : 11
- C.
23 : 13
- D.
37 : 29
Attempted by 5 students.
Show answer & explanation
Correct answer: C
Original shares are A:B:C = 5:4:3, so total = 12 and B’s share = 4/12. B’s share is taken by A and C in the ratio 2:1. A gets (2/3)(4/12) = 2/9 and C gets (1/3)(4/12) = 1/9. New A share = 5/12 + 2/9 = 23/36; new C share = 3/12 + 1/9 = 13/36. Hence A:C = 23:13.