A, B and C are partners sharing profits in the ratio of 6 : 3 : 2. If C retires, the new profit sharing ratio between A and B will be: |
7 : 4 2 : 1 1 : 1 1 : 2 |
2 : 1 |
The correct answer is Option (2) - 2 : 1. Old ratio = 6:3:2 (A, B and C) In the absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of retiring/deceased partner, it is assumed that they will acquire it in the old profit sharing ratio and so share the future profits in their old ratio. |