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

Question

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2 . Tarun retires from the firm and his share was taken over by Naveen and Suresh in the ratio 2:1 . In such a case, the new profit sharing ratio will be:

Accepted Answer

Let's calculate the gain and new ratios step-by-step:1. Old Shares:

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

2. Distribution of Tarun's Share (

\frac{2}{10}

) in the ratio of

2 : 1

:

Gain by Naveen = \frac{2}{10} \times \frac{2}{3} = \frac{4}{30}

Gain by Suresh = \frac{2}{10} \times \frac{1}{3} = \frac{2}{30}

3. New Shares:

New Share = Old Share + Gaining Share

Naveen:

New Share = \frac{5}{10} + \frac{4}{30} = \frac{15 + 4}{30} = \frac{19}{30}

Suresh:

New Share = \frac{3}{10} + \frac{2}{30} = \frac{9 + 2}{30} = \frac{11}{30}

Comparing the final shares:

Naveen : Suresh = 19 : 11

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of $5 : 3 : 2$ . Tarun retires from the firm and his share was taken over by Naveen and Suresh in the ratio $2 : 1$ . In such a case, the new profit sharing ratio will be:

Solution & Step-by-step Explanation

Practice this question

Share This Question

Related Questions

Ready for a Full Test?

Discussion

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Tarun retires from the firm and his share was taken over by Naveen and Suresh in the ratio 2:1. In such a case, the new profit sharing ratio will be: