Question

Q.). A, B and C are partners sharing profits in the ratio of 1/2:1/3:1/6 retires and his share is taken by A and C in the ratio of 5:3. Calculate the new ratio
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Answer 1

Given:

• A, B and C are partners in a firm, sharing profits in the ratio 1/2:1/3:1/6.
• B retired.
• B's share is taken by A and C in the ratio 5:3.

To find: The new profit-sharing ratio.

Answer:

• A's old ratio = 1/2, or 3/6
• B's old ratio = 1/3, or 2/6
• C's old ratio = 1/6

B's share, i.e., 2/6, will be taken by A and C in the ratio 5:3.

From B, A gets:

• 2/6 × 5/8 = 10/48

From B, C gets:

• 2/6 × 3/8 = 6/48

Calculation of the new profit-sharing ratio:

New ratio = Old ratio + Gain from the retiring partner's ratio

For A:

• New ratio = 3/6 + 10/48 = (24 + 10)/48 = 34/48

For C:

• New ratio = 1/6 + 6/48 = (8 + 6)/48 = 14/48

Therefore, the new profit-sharing ratio is 34:14, or 17:7.