A, B & C are partners in a partnership firm sharing profits and losses in the ratio of 4:3:2. B decides to retire from the firm. Calculate the new profit sharing between the remaining partners in the following conditions-
If B gives his share to A & C in equal proportion.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 11:7.
B share is 3/9
A acquire = 3/9*1/2
= 3/18
C acquire = 3/9*1/2
= 3/18
A new share = 4/9+3/18
= (8+3)/18
= 11/18
C new share = 2/9+3/18
= (4+3)/18
= 7/18
So, new profit sharing ratio is 11:7