Question

$P,Q$ and $R$ were partners in a firm sharing profits in the ratio of $3:2:1$. They admitted $S$ as a new partner for $1/8^{th}$ share in the profits, which he acquired $1/{16}^{th}$ from $B$ and $1/{16}^{th}$ form $R$. Calculated the new profit sharing ratio of $P,Q,R$ and $S$.

Answer 1

Profit Sharing Ratio of P, Q and R $=3:2:1$

S's share $=\frac{1}{8}$ (acquired $\frac{1}{16}th$ share each from P and Q)

R's share $=\frac{1}{6}$ (retained original share)

P's new share $=\frac{3}{6}-\frac{1}{16}=\frac{21}{48}$

Q's new share $=\frac{2}{6}-\frac{1}{16}=\frac{13}{48}$

New Ratio of P, Q, R and S $=\frac{21}{48}:\frac{13}{48}:\frac{1}{6}:\frac{1}{8}$ or $21:13:8:6$