Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

  • A 1 : 1
  • B 3 : 6
  • C 2 : 1
  • D 2 : 6
jamb 2018accounting

The correct answer is C. 2 : 1

The existing ratio between Tony and Rose = 2/6 and 1/6

  Ade’s ratio = 3/6

  Ade’s share to be taken by Tony and Rose in the ratio 2 : 1

  Tony gets: 3/6 x 2/6

  = 6/18

  Rose gets: 3/6 x 1/3

  = 3/18

  New ratio between Tony and Rose = 6 : 3

  = 2 : 1

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