A, B and C were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if C retires.


Old Ratio (A, B and C) = 1/2 :2/5 : 1/10 or 5 : 4 : 1

As we can see, no information is given as to how A and B are acquiring C’s profit share after his retirement, so the new profit-sharing ratio between A and B is calculated just by crossing out the C’s share. That is, the new ratio becomes 5 : 4.
∴ New Profit Ratio (A and B) = 5 : 4

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