Question

A, B and C are partners sharing profits in the ratio 2:2:1.B retires and his share is taken

by C. Calculate new profit-sharing ratio of A and C​

Answer 1

Answer: New profit-sharing ratio between A and C will be 2:3.

Explanation: Old profit-sharing ratio among A, B and C= 2 : 2 : 1
Upon B's retirement, his whole share is taken over by C himself.

∴ New profit-sharing ratio:

A's new share = 2/5 (Remains the same)
C's new share= 1/5+2/5
= 3/5 (Gain)

Thus, new profit-sharing ratio between A and C= 2:3
In case of admission of a new partner, C would be firstly liable to sacrifice his shares for the admitting partner, unless specified by the partners.