A, B & C are partners in a partnership firm sharing profits in the ratio of 5:5:4. B retires and his share is divided equally between A & C. What will be the new profit sharing ratio between the remaining partners?
Answer & explanation
Correct answer: option 3
Old ratio= 5:5:4
B share 5/14 is taken equally by A & C means 5/14*1/2= 5/28 is taken by each remaining partner.
So A's new share = 5/14+5/28= 15/28
C's new share= 4/14+5/28= 13/28
So, new ratio is 15:13