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 1/8th share in the profits which he acquired 1/16th from P and 1/16th from Q.

Calculate 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 = 1/8 (acquired 1/16th share each from P and Q)

R's share = 1/6 (retained original share)

P's new share = (3/6) - (1/16) = 21/48

Q's new share = (2/6) - (1/16) = 13/48

`"New Ratio of P,Q,R and S ="21/48:13/48:1/6:1/8" or "21:13:8:6`