Question

Navin, Ravi and Kumar are partners sharing profits in the ratio of 1/2, 1/4 and 1/4 respectively. Kumar retires and his share is taken up by Navin and Ravi equally. Calculate the new profit sharing ratio and gaining ratio.

Answer 1

Kumar's share of profit `1/4` (gained equally bby Navin/Ravi)

Gaining Ratio-

Navin- `1/4 xx 1/2 = 1/8`

Ravi- `1/4 xx 1/2 = 1/8`

Gaining Ratio- 1 : 1

New Ratio - Old Ratio + Gain Ratio

Navin = `1/2 + 1/8 = (4 + 1)/8 = 5/8`

Ravi = `1/4 + 1/8 = (2 + 1)/8 = 3/8`

New Ratio = 5 : 3