A, B and C share profits and losses of the firm equally. B retires from business and his share is purchased by A and C in the ratio of 2 : 3. New profit sharing ratio between A and C respectively would be :
Answer & explanation
Correct answer: option 3
Gain of A= 2/5*1/3=2/15
Gain of C= 3/5*1/3=3/15
New Share of A= 1/3+2/15=7/15
New Share of C= 1/3+3/15=8/15
NPR=7:8
Gain of C= 3/5*1/3=3/15
New Share of A= 1/3+2/15=7/15
New Share of C= 1/3+3/15=8/15
NPR=7:8