Question

Ishan, Jatin and Kapil were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Jatin retired and his share was taken up by Ishan and Kapil in the ratio 1 : 1. The new profit-sharing ratio between Ishan and Kapil after Jatin’s retirement will be:

• A. 5 : 1
• B. 1 : 1
• C. 5 : 4
• D. 7 : 3

Hint:

When a retiring partner’s share is acquired by others, add the gained share to their existing share to compute new ratio.

Answer 1

The Correct Option is D

Old ratio of Ishan : Jatin : Kapil = 5 : 4 : 1
Jatin’s share = $\dfrac{4}{10}$
Jatin’s share is taken equally by Ishan and Kapil = $\dfrac{4}{10} \div 2 = \dfrac{2}{10}$ each
New share of Ishan = $\dfrac{5}{10} + \dfrac{2}{10} = \dfrac{7}{10}$
New share of Kapil = $\dfrac{1}{10} + \dfrac{2}{10} = \dfrac{3}{10}$
New ratio = 7 : 3 Final Answer: 7 : 3