Question

Varun, Aryan and Nimit were partners in a firm sharing profits in the ratio 2 : 2 : 1. Aryan retired and surrendered 1/3 of his share to Varun and remaining to Nimit. What will be the new ratio between Varun and Nimit?

• A. 2 : 1
• B. 1 : 2
• C. 8 : 7
• D. 1 : 1

Hint:

Always split retiring partner’s share as per given surrender and then add it to the continuing partners.

Answer 1

The Correct Option is C

Old shares: Varun = 2/5, Aryan = 2/5, Nimit = 1/5
Aryan’s 2/5 share: - 1/3 × 2/5 = 2/15 to Varun - 2/3 × 2/5 = 4/15 to Nimit New shares:
Varun = 2/5 + 2/15 = (6+2)/15 = 8/15
Nimit = 1/5 + 4/15 = (3+4)/15 = 7/15
So, new ratio = 8 : 7