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 whole share to A only.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 7:2.
B share = 3/9
A new share = 4/9 + 3/9
= 7/9
C new share remains same means 2/9
So, the new ratio is 7/9:2/9 or 7:2