Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio 2:1. The new profit sharing ratio is
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 7:3.
Old ratio = 5:3:2 (Naveen, Suresh and Tarun)
Suresh retires
Gaining ratio = 2:1
Gained share of Naveen = 3/10 x 2/3
= 6/30
Gained share of Tarun = 3/10 x 1/3
= 3/30
New share = Old share + Gained share
New share of Naveen = 5/10 + 6/30
= (15+6)/30
= 21/30
New share of Tarun = 2/10 + 3/30
= (6+3)/30
= 9/30
New ratio = 21/30 :9/30
= 21:9
= 7:3