Question

Varsha, Aryan, and Nimit were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Varsha retired and surrendered 1/3rd of her share in favour of Aryan and the remaining share in favour of Nimit. The new profit sharing ratio between Aryan and Nimit will be ______.

Options

• 2 : 1

• 8 : 7

• 1 : 2

• 1 : 1

Answer 1

Varsha, Aryan, and Nimit were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Varsha retired and surrendered 1/3rd of her share in favour of Aryan and the remaining share in favour of Nimit. The new profit sharing ratio between Aryan and Nimit will be 8 : 7.

Explanation:

Old profit sharing ratio = 2 : 2 : 1

On Varsha’s retirement, he `1/3` share is taken by Aryan, and remaining `2/3` share is taken by Nimit.

Aryan’s gain = `2/5 xx 1/3`

= `2/15`

Nimit’s gain = `2/5 xx 2/3`

= `4/15`

New share of Aryan = `2/5 + 2/15`

= `(2 xx 3)/(5 xx 3) + 2/15`

= `6/15 + 2/15`

= `(6 + 2)/15`

= `8/15`

New share of Nimit = `1/5 + 4/15`

= `(1 xx 3)/(5 xx 3) + 4/15`

= `3/15 + 4/15`

= `(3 + 4)/15`

= `7/15`

New profit sharing ratio of Aryan and Nimit = `8/15 : 7/15` or 8 : 7