Question

X, Y and Z were partners sharing profits in the ratio of $1/5,1/3$ and $7/15$ respectively. Z retires and his share was taken up by X and Y in the ratio of $3:2$. The new ratio will be ________.

• A. $12:13$
• B. $5:3$
• C. $3:2$
• D. $1:1$

Answer 1

Answer: (A)

$12:13$

Old ratio (X, Y, and Z) = 1/5, 1/3 and 7/15 or 3 : 5 : 7

Z's profit share = 7/15

X and Y decided to take his share in the ratio of 3 : 2

Share of Z taken by X = (7/5) *(3/5) = 21/75

Share of Z taken by Y = (7/5) * (2/5) = 14/75

New profit share = Old profit share + Share taken from Z

X's new share = (3/15) + (21/75) = (15 + 21)/75 = 36/75

Z's new share = (5/15) + (14/75) = (25 + 14)/75 = 39/75

New profit sharing ratio (X and Y) = 36:39 = 12 : 13