Question

Pari, Param, and Prizleen are partners sharing profits and losses in the ratio of 5:3:2. Param retires. Her share is taken by Pari and Prizleen in the ratio of 2:1. Calculate the new profit sharing ratio of Pari and Prizleen.

• A. 7:3
• B. 3:7
• C. 5:2
• D. 2:1

Answer 1

The Correct Option is A

1. Calculate Param’s share: - Total ratio parts = 5 + 3 + 2 = 10 - Param’s share \(= \frac{3}{10}\) of the total profit.
2. Distribution of Param’s share: - Pari takes \(\frac{2}{3}\) of Param’s share. - Prizleen takes \(\frac{1}{3}\) of Param’s share.
3. New shares: - Pari’s new share = Original share + Pari’s part of Param’s share 
Prizleen’s new share \(=\frac{2}{10} + \frac{1}{3} \times \frac{3}{10} = \frac{2}{10} + \frac{1}{10} = \frac{3}{10}\)
4. New profit-sharing ratio of Pari and Prizleen: - New ratio = Pari’s share : Prizleen’s share \(\frac{7}{10}: \frac{3}{10} = \frac{7}{3}\)