A, B and C are partners in a firm sharing profits and losses equally. C retired and his share was acquired by A and B in the ratio of $\displaystyle 3$ : 2. Calculate the new profit sharing ratio of A and B.

Old Profit Sharing Ratio A B C $\displaystyle 1$ $\displaystyle 1$ $\displaystyle 1$ $\displaystyle 3$ $\displaystyle 3$ $\displaystyle 3$ $\displaystyle 1$ C’s share = $\displaystyle 3$ $\displaystyle 1$ $\displaystyle 3$ Share acquired by A =  $\displaystyle 3$ $\displaystyle 5$ $\displaystyle 3$ = $\displaystyle 15$ $\displaystyle 1$ $\displaystyle 2$  Share acquired by B = $\displaystyle 3$ $\displaystyle 5$ $\displaystyle 2$ = $\displaystyle 15$ New Share= Old Share + Gain A’s old share $\displaystyle 1$/$\displaystyle 3$ , A’s gain = $\displaystyle 3$/$\displaystyle 15$ = $\displaystyle 1$ $\displaystyle 3$ + A’s new share = $\displaystyle 3$ $\displaystyle 15$ = $\displaystyle 8$/$\displaystyle 15$ B’s old share = $\displaystyle 1$/$\displaystyle 3$ , B’s gain = $\displaystyle 2$/$\displaystyle 15$ $\displaystyle 1$ $\displaystyle 2$ B’s new share= + $\displaystyle 3$ $\displaystyle 15$ = $\displaystyle 7$/$\displaystyle 15$ New ratio = $\displaystyle 8$:$\displaystyle 7$ Q. (a) From the following information…………