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Question
L, M and O were partners in a firm sharing profits in the ratio of 3 : 2 : 2. M retired and his share was divided equally between L and O. Calculate the new profit sharing ratio of L and O.
Sum
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Solution
M's share will be divided between A and C in the ratio of 1 : 1.
L will gain `1/2 "of" 2/7 = 1/7`
Hence, L's new share = `3/7+1/7=4/7`
O will gain `1/2 "of" 2/7 = 1/7`
Hence, O's new share = `2/7+1/7=3/7`
New ratio = L`4/7:"O"3/7` or 4 : 3
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