Question

Aman, Naman and Neel were partners in a firm sharing profits in the ratio of 1 : 2 : 1. Neel retires and he surrender `2/3`rd of his share in favour of Aman and the remaining share in favour of Naman.

Calculate the new profit sharing ratio of Aman and Naman.

Answer 1

Old ratio = 1 : 2 : 1

Neel's share = `1/4`

Neel surrenders `2/3` of his share to Aman:

`2/3 xx 1/4 = 1/6`

Remaining `1/3` goes to Naman:

`1/3 xx 1/4 = 1/12`

New shares:

Aman = `1/4 + 1/6 = 5/12`

Naman = `1/2 + 1/12 = 7/12`

Therefore, the new profit-sharing ratio of Aman and Naman = 5 : 7.