A, B and C are partners in a firm sharing profits in the ratio of 2 :

1.	A, B and C are partners in a firm sharing profits in the ratio of 2 : 1 : 2. A retires and his share is entirely taken by B. Calculate new profit sharing ratio.
Answer» B gets A’s complete share, means B will get more \(\frac{2}{5}\) share. B s new profit share = \(= \frac { 1 }{ 5 } +\frac { 2 }{ 5 } =\frac { 1+2 }{ 5 } =\frac { 3 }{ 5 } \) C’s old share was= \(\frac{2}{5}\) So, profit and loss ratio of both = \( \frac { 3 }{ 5 } :\frac { 2 }{ 5 } = 3:2\).

A, B and C are partners in a firm sharing profits in the ratio of 2 : 1 : 2. A retires and his share is entirely taken by B. Calculate new profit sharing ratio.

Answer»

B gets A’s complete share, means B will get more \(\frac{2}{5}\) share.

B s new profit share = \(= \frac { 1 }{ 5 } +\frac { 2 }{ 5 } =\frac { 1+2 }{ 5 } =\frac { 3 }{ 5 } \)

C’s old share was= \(\frac{2}{5}\)

So, profit and loss ratio of both

= \( \frac { 3 }{ 5 } :\frac { 2 }{ 5 } = 3:2\).