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
Correct Answer:
Option C = 2 : 1
Explanation
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
