A, B, C and D are Partners in a firm sharing profits in the ratio of 3 : 2 : 1 : 4. A retired and his share is acquired by B and C in the ratio 3 : 2. Calculate new profit sharing ratio of partners.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 19 : 11 : 20.
Old ratio = 3 : 2 : 1 : 4
A retires and his share = 3/10
3/10 share is taken by B and C in = 3 : 2
Gaining share of B = 3/10 x 3/5
= 9/50
Gaining share of B = 3/10 x 2/5
= 6/50
New share of B = 2/10 + 9/50
= (10+9)/50
= 19/50
New share of C = 1/10 + 6/50
= (5+6)/50
= 11/50
Share of D will be as old share.
New share of D = 4/10 or 20/50
New ratio between B, C & D = 19/50 : 11/50 : 20/50
= 19:11:20