P, Q and R have been sharing profits and losses in the ratio of 5 : 3 : 2. Q retires. His share is taken by P and R in the ratio of 2 : 1. New profit sharing ratio will be:
Answer & explanation
Correct answer: option 2
Gain of P= 2/3*3/10=2/10
Gain of R=1/3*3/10=1/10
New Share of P=5/10+2/10=7/10
New Share of R=2/10+1/10=3/10
NPR=7:3
Gain of R=1/3*3/10=1/10
New Share of P=5/10+2/10=7/10
New Share of R=2/10+1/10=3/10
NPR=7:3