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A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. C retires and his share is taken up by A. Calculate new profit-sharing ratio of A and B. |
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Answer» fit-sharing ratio of A and B is calculated below:EXPLANATION:Given,A, B and C are partners who are sharing profits in the ratio of 5 : 3 : 2. Old Ratio in the A, B and C = 5: 3: 2After C's RETIREMENT, his share is taken up by ARe tiring Partner C's Profit Share C's share is taken by A in entriety after his retirement.Calculation of NEW Ratio:New Ratio = Old Ratio + Share from CNew Ratio of A will beNew ratio of B will be Therefore, the New Profit sharing Ratio of A and B=7: 3 |
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