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 condition
If B gives his whole share to C only.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 4:5.
B share= 3/9
C new share = 2/9 + 3/9
= 5/9
A new share remains same means 4/9
So, the new ratio is 4/9 : 5/9
or 4:5