Question

Ravita, Savita, Kavita and Babita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 : 2. On 1stApril, 2024 Savita retired and her share was acquired equally by the remaining partners. The new profit sharing ratio between Ravita, Kavita and Babita will be :

• A. 2 : 1 : 1
• B. 1 : 2 : 1
• C. 1 : 1 : 2
• D. 3 : 3 : 2

Hint:

On retirement, distribute the retiring partner’s share among remaining partners as per agreement or equally if not specified.

Answer 1

The Correct Option is A

Old Ratio = Ravita : Savita : Kavita : Babita = 5 : 3 : 2 : 2
Savita’s share = \(\frac{3}{12} = \frac{1}{4}\)
This \(\frac{1}{4}\) is acquired equally by Ravita, Kavita, Babita.
Each gets = \(\frac{1}{4} \div 3 = \frac{1}{12}\)
New shares:
Ravita = \(\frac{5}{12} + \frac{1}{12} = \frac{6}{12} = \frac{1}{2}\)
Kavita = \(\frac{2}{12} + \frac{1}{12} = \frac{3}{12} = \frac{1}{4}\)
Babita = \(\frac{2}{12} + \frac{1}{12} = \frac{3}{12} = \frac{1}{4}\)
Ratio = 1/2 : 1/4 : 1/4 = 2 : 1 : 1
Therefore, option (A) is correct.