A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires, if A and B take the share of retiring partner equally, new profit sharing ratio will be
A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires, if A and B take the share of retiring partner equally, new profit sharing ratio will be
a) 7 : 5
b) 3 : 2
c) 1 : 1
d) None of these
Anurag Pathak Changed status to publish July 2, 2023
Ans – a)
Solution:-
Old Profit sharing ratio of A, B and C is 3 : 2 : 1
C’s share 1/6 taken over by A and B equally
A takes 1/6 × 1/2 = 1/12
B takes 1/6 × 1/2 = 1/12
A’s share in new firm = 3/6 + 1/12 = 6 + 1/12 = 7/12
B’s share in new firm = 2/6 + 1/12 = 4 + 1/12 = 5/12
New Profit sharing ratio of A and B is 7 : 5
Anurag Pathak Changed status to publish July 2, 2023
