Question

Keshav, Nirmal and Pankaj are partners sharing profits in the ratio of 5 : 3 : 2. Pankaj died and his share is taken by Keshav.

Calculate New Profit-sharing Ratio of Keshav and Nirmal.

Answer 1

The original profit-sharing ratio among Keshav, Nirmal, and Pankaj is given as 5 : 3 : 2.

Keshav’s Old Share = `5/10`

Nirmal’s Old Share = `3/10`

Pankaj’s Old Share = `2/10`

Pankaj dies, and his entire profit share of `2/10` is completely acquired by Keshav. Nirmal does not acquire any part of it.

Keshav’s Gain = `2/10`

Nirmal’s Gain = 0

Keshav’s New Share = Old Share + Gained Share

= `5/10 + 2/10`

= `7/10`

Nirmal’s New Share = Old Share + Gained Share

= `3/10 + 0`

= `3/10`

Therefore, the new profit-sharing ratio between Keshav and Nirmal is 7 : 3.