A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the ratio of 2:3. New profit sharing ratio between A and C respectively would be
A. 1:1
B. 2:2
C. 7:8
D. 3:5
Answer:C
A, B, and C share profits and losses of the company equally. B retires form business and his share is purchased by A and C in the ratio of 2:3. New profit sharing ratio between A and C respectively would be
A. 1:1 B. 2:2 C. 7:8 D. 3:5