A, B & C are partners in a partnership firm sharing profits in the ratio of 4:3:2. C retires from the business. A acquired 4/9 of C's share and the balance is acquired by B.
What will be the new profit sharing ratio?
Answer & explanation
Correct answer: option 3
C share is 2/9
A acquire 4/9th of 2/9 means 4/9*2/9= 8/81
B acquire= 2/9- 8/81= 10/81
Old ratio= 4:3:2
NEW SHARE OF A= 4/9+8/81 = 44/81
NEW SHARE OF B= 3/9+10/81= 37/81
So, the new ratio is 44:37