Question

A, B and C are partners sharing profits in the ratio of \(5 : 3 : 2\). If C retires, the New Profit Sharing Ratio between A and B will be :

• A. \(3 : 2\)
• B. \(5 : 3\)
• C. \(5 : 2\)
• D. \(1 : 1\)

Hint:

In retirement questions, if no new gaining ratio is mentioned, the simplest trick is to hide the retiring partner's share in the old ratio. The visible ratio becomes the new profit-sharing ratio as well as the gaining ratio for the remaining partners.

Answer 1

The Correct Option is B