Narender, Nitish and Naidu are partners sharing profits in the ratio of 5:3:2. Nitish retires. Narender and Naidu decide to share the profits of the new firm in the ratio of 3:2. What will be the gaining ratio of Narender and Naidu?

1:2

Correct answer: Option (3) → 1:2

Concept: Gaining Ratio = New Share – Old Share, per Reconstitution of a Partnership Firm – Retirement/Death of a Partner.

Old ratio Narender : Nitish : Naidu = 5 : 3 : 2; Nitish retires; new Narender : Naidu = 3 : 2.
Narender’s gain = 3/5 – 5/10 = 6/10 – 5/10 = 1/10
Naidu’s gain = 2/5 – 2/10 = 4/10 – 2/10 = 2/10
Gaining ratio = 1/10 : 2/10 = 1 : 2.