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 the ratio of 4:2.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2:1.
B share = 3/9
A & C takes this share in 4:2.
A gets = 3/9 x 4/6
= 2/9
C gets = 3/9 x 2/6
= 1/9
A new share = 2/9 + 4/9
= 6/9
C new share = 1/9 + 2/9
= 3/9
So, new ratio is 6/9 :3/9 or 6:3 i.e. 2:1