R, S and M are partners sharing profits in the ratio of 2/5,

3 :- R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retires from the business and his share is taken by R and S in the ratio of 1:2. Calculate the new profit sharing ratio.

Solution:-
Old ratio = 2:2:1
M retires and his share is taken over by R and S in 1:2
Calculation of new profit sharing ratio of R and S
R’s new share = 2/5 + (1/5 x 1/3) = 2/5 + 1/15 = 7/15
S’s new share = 2/5 + (1/5 x 2/3) = 2/5 + 2/15 = 8/15
Therefore, new ratio of R and S will be 7:8