8 :- A, B and C were partners in a firm sharing profits in the ratio of 8:4:3. B retires and his share is taken up equally by A and C. Find the new profit sharing ratio.
Solution:-
Old ratio = 8:4:3
B retires and his taken over by A and C in 1:1
Calculation of New profit sharing ratio
A = 8/15 + (4/15 x 1/2) = 8/15 + 4/30 = 20/30
C = 3/15 + (4/15 x 1/2) = 3/15 + 4/30 = 10/30
Thus, New Profit sharing ratio of A and C is 2:1