Question

Anita jaya and nisha are partners sharing profit and losses in the ratio of 1/1/1 jaya retires from firm anita and nisha decide to share future profit in the ratio of 4/3 .Calculate the earning ratio

Answer 1

Answer:

The earning ration between Anita and Nisha is 5:2.

Step-by-step explanation:

Given data:  

Ratio of profit shares between Anita, Jaya & Nisha = 1:1:1

New ratio of profit shares between Anita and Nisha after the retirement of Jaya = 4:3

To find: Earning ratio

From the above given information, we can write

Anita’s profit share = 1/(1+1+1) = 1/3  

Jaya’s profit share = 1/3

Nisha’s profit share = 1/3

After Jaya’s retirement,  

Anita’s new profit share = 4/(4+3) = 4/7

Nisha’s new profit share = 3/(4+3) = 3/7

Earning/Gaining ratio = New profit ratio – Old profit ratio

∴ Anita’s earning share = 4/7 – 1/3 = 5/21

And,

∴ Nisha’s earning share = 3/7 – 1/3 = 2/21

∴ Earning/Gaining ratio between Anita & Nisha = 5/2  or 5:2