JAMB Accounts Principles of Accounts 2018 Paper

Concept:When one partner retires, the remaining partners take the retiring partner's share in their existing profit-sharing ratio, then add it to their old shares to form the new ratio.Explanation:The old ratio is Ade : Tony : Rose = $3 : 2 : 1$.Therefore, Ade's share = $\frac{3}{6}$, Tony's share = $\frac{2}{6}$, and Rose's share = $\frac{1}{6}$.Ade retires, so his share of $\frac{3}{6}$ is taken by Tony and Rose in their old ratio of $2 : 1$.Tony's gain = $\frac{3}{6} \times \frac{2}{3} = \frac{2}{6}$.Rose's gain = $\frac{3}{6} \times \frac{1}{3} = \frac{1}{6}$.New share of Tony = $\frac{2}{6} + \frac{2}{6} = \frac{4}{6}$.New share of Rose = $\frac{1}{6} + \frac{1}{6} = \frac{2}{6}$.Hence, the new ratio between Tony and Rose = $4 : 2 = 2 : 1$.Answer:C. $2 : 1$