A, B and C share profits and losses of the firm equally. B retires from 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. 01 : 01
B. 02 : 02
C. 07 : 08
D. 03 : 05
Answer:C
A, B and C share profits and losses of the firm equally. B retires from 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. 01 : 01 B. 02 : 02 C. 07 : 08 D. 03 : 05