Question

Punit, Sujit and Jiten are partners sharing profits and losses in the ratio of 4 : 3 : 1. Sujit retires from the firm, selling his share of profit to Punit and Jiten for ₹ 1,50,000; ₹ 80,000 being paid by Punit and ₹ 70,000 by Jiten. What is the new profit-sharing ratio between the remaining partners?

Options

• 4 : 1

• 7 : 3

• 8 : 7

• 1 : 1

Answer 1

7 : 3

Explanation:

Old ratio = 4 : 3 : 1

Sujit share is acquired by Punit and Jiten in the ratio of 80,000 : 70,000 is 8 : 7.

Punit’s gain = `3/8xx8/15=24/120`

Jiten’s gain = `3/8xx7/15=21/120`

New ratio = Old ratio + Gain ratio

Punit’s share = `4/8+24/120=(60+24)/120=84/120`

Jiten’s share = `1/8=(15+21)/120=36/120`

New share of Punit : Jiten

= 84 : 36 

= 7 : 3