Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2 . Suresh retires from t

Question

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 is acquired by Naveen and Tarun in the ratio 2:1 . Calculate the new profit sharing ratio between Naveen and Tarun.

Accepted Answer

Let's calculate the step-by-step changes in profit shares:Old Shares:

Naveen = \frac{5}{10}, Suresh = \frac{3}{10}, Tarun = \frac{2}{10}

Share given up by Suresh:

\frac{3}{10}

Acquisition of Suresh's share by Naveen and Tarun:

Naveen’s Gain = \frac{3}{10} \times \frac{2}{3} = \frac{6}{30} = \frac{2}{10}

Tarun’s Gain = \frac{3}{10} \times \frac{1}{3} = \frac{3}{30} = \frac{1}{10}

New Profit Shares:

New Share = Old Share + Gaining Share

Naveen’s New Share = \frac{5}{10} + \frac{2}{10} = \frac{7}{10}

Tarun’s New Share = \frac{2}{10} + \frac{1}{10} = \frac{3}{10}

Thus, the new profit-sharing ratio between Naveen and Tarun is

7 : 3

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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 is acquired by Naveen and Tarun in the ratio $2 : 1$ . Calculate the new profit sharing ratio between Naveen and Tarun.

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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 is acquired by Naveen and Tarun in the ratio 2:1. Calculate the new profit sharing ratio between Naveen and Tarun.