{"id":53061,"date":"2024-04-15T23:48:30","date_gmt":"2024-04-15T23:48:30","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53061"},"modified":"2024-04-15T23:48:30","modified_gmt":"2024-04-15T23:48:30","slug":"a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/","title":{"rendered":"A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;$${\\text{A}} = \\frac{1}{2}:{\\text{B}} = \\frac{1}{2}$$&#8221; option2=&#8221;$${\\text{A}} = \\frac{3}{5}:{\\text{B}} = \\frac{2}{5}$$&#8221; option3=&#8221;$${\\text{A}} = \\frac{2}{5}:{\\text{B}} = \\frac{3}{5}$$&#8221; option4=&#8221;$${\\text{A}} = \\frac{1}{3}:{\\text{B}} = \\frac{2}{3}$$&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is $\\boxed{\\text{A}}$.<\/p>\n<p>Initially, A, B, and C share profits in the ratio $\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}$. This means that A&#8217;s share is $\\frac{2}{5}$ of the total profit, B&#8217;s share is $\\frac{2}{5}$ of the total profit, and C&#8217;s share is $\\frac{1}{5}$ of the total profit.<\/p>\n<p>When C retires, his share is bought by A and B in equal ratio. This means that A and B each acquire $\\frac{1}{2}$ of C&#8217;s share. Therefore, A&#8217;s new share is $\\frac{2}{5} + \\frac{1}{2} = \\frac{3}{5}$, and B&#8217;s new share is $\\frac{2}{5} + \\frac{1}{2} = \\frac{3}{5}$.<\/p>\n<p>Therefore, the new profit sharing ratio is $\\text{A} = \\frac{3}{5}:{\\text{B}} = \\frac{3}{5}$.<\/p>\n<p>Option B is incorrect because it does not take into account the fact that C&#8217;s share is bought by A and B in equal ratio. Option C is incorrect because it does not take into account the fact that A&#8217;s share is $\\frac{2}{5}$ of the total profit, B&#8217;s share is $\\frac{2}{5}$ of the total profit, and C&#8217;s share is $\\frac{1}{5}$ of the total profit. Option D is incorrect because it does not take into account the fact that A and B each acquire $\\frac{1}{2}$ of C&#8217;s share.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;$${\\text{A}} = \\frac{1}{2}:{\\text{B}} = \\frac{1}{2}$$&#8221; option2=&#8221;$${\\text{A}} = \\frac{3}{5}:{\\text{B}} = \\frac{2}{5}$$&#8221; option3=&#8221;$${\\text{A}} = \\frac{2}{5}:{\\text{B}} = \\frac{3}{5}$$&#8221; option4=&#8221;$${\\text{A}} = \\frac{1}{3}:{\\text{B}} = \\frac{2}{3}$$&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-53061","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;$${text{A}} = frac{1}{2}:{text{B}} = frac{1}{2}$$&#8221; option2=&#8221;$${text{A}} = frac{3}{5}:{text{B}} = frac{2}{5}$$&#8221; option3=&#8221;$${text{A}} = frac{2}{5}:{text{B}} = frac{3}{5}$$&#8221; option4=&#8221;$${text{A}} = frac{1}{3}:{text{B}} = frac{2}{3}$$&#8221; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:48:30+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/","og_locale":"en_US","og_type":"article","og_title":"A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.","og_description":"[amp_mcq option1=&#8221;$${text{A}} = frac{1}{2}:{text{B}} = frac{1}{2}$$&#8221; option2=&#8221;$${text{A}} = frac{3}{5}:{text{B}} = frac{2}{5}$$&#8221; option3=&#8221;$${text{A}} = frac{2}{5}:{text{B}} = frac{3}{5}$$&#8221; option4=&#8221;$${text{A}} = frac{1}{3}:{text{B}} = frac{2}{3}$$&#8221; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:48:30+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-b-and-c-are-partners-in-a-firm-sharing-profits-in-the-ratio-frac25frac25frac15-c-retires-from-the-firm-and-his-share-is-bought-by-a-and-b-in-equal-ratio-new-profit-s\/","name":"A, B and C are partners in a firm sharing profits in the ratio $$\\frac{2}{5}:\\,\\frac{2}{5}:\\,\\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. 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