Pari, Param, Prizleen are partners sharing profits and losses in the ratio of 5 : 3 : 2. Param retires. Her share is taken by Pari and Prizleen in the ratio of 2 : 1. Calculate the new profit sharing ratio of Pari and Prizleen.

7 : 3

The correct answer is Option (1) → 7 : 3.

Old ratio of Pari, Param, Prizleen = 5 : 3 : 2
Param retires
Gaining ratio of Pari & Prizleen = 2:1

Gained share of Pari = 2/3 x 3/10
                                 = 6/30 or 2/10

Gained share of Prizleen = 1/3 x 3/10
                                       = 3/30 or 1/10

NEW SHARE = OLD SHARE + ACQUIRED SHARE

New share of Pari = 5/10 + 2/10
                              = 7/10

New share of Prizleen = 2/10 + 1/10
                                    = 3/10

Thus new ratio = 7/10 : 3/10
                        = 7:3