Question

'A', 'B', 'C' and 'D' are partners in a firm. Their
profit sharing ratio was 3:2: 1 : 4. 'B' and 'C'
decide to retire from the firm. Their share of
profits are taken-over by 'A' and 'D' equally.
Calculate new profit sharing ratio of 'A' and 'D'.​

Answer 1

Answer:

A B C D

old ratio= 3/10 2/10 1/10 4/10

new ratio= A= 3/10+(2/10+1/10)×1/2

= 3/10+(2+1/10)×1/2

= 3/10+(3/10)×1/2

= 3/10+3/20

= 3×2+3/20

= 9/20

D= 4/10+(2/10+1/10)×1/2

= 4/10+(2+1/10)×1/2

= 4/10+(3/10)×1/2

= 4/10+3/20

= 4×2+3/20

=11/20

hence: new ratio A & D= 9:11