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

Answer: (A)

7:3

Answer 2

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 $\frac{7}{10}: \frac{3}{10} = \frac{7}{3}$