Question

P,Q and R are partners sharing profits in the ratio of 4:3:1. P retires and his share is

taken by Q and R equally Calculate new profit sharing ratio of Q and R​

Answer 1

Answer:

New profit sharing ratio of Q and R = 5 : 3

Explanation:

Old ratio :

P : Q : R = 4 : 3 : 1

P' Share of Profit = $\sf{\dfrac{4}{8}}$

Q's Share of Profit =$\sf{\dfrac{3}{8}}$

R's Share of Profit =$\sf{\dfrac{1}{8}}$

★ P retires and his share is taken by Q and R Equally :

So,

• Share of P taken by Q :

⇒ $\sf{ \dfrac{4}{8} \times \dfrac{1}{2} = \dfrac{4}{16}}$

• Share of P taken by R :

⇒ $\sf{\dfrac{4}{8} \times \dfrac{1}{2} = \dfrac{4}{16}}$

★ New Profit Share = Old Profit Share + Share taken from P

• Q's new Share :

⇒ $\sf{\dfrac{3}{8}+\dfrac{4}{16}=\dfrac{10}{16}}$

Q's new Share = $\sf{\dfrac{10}{16}}$

• R's new Share :

⇒ $\sf{\dfrac{1}{8} + \dfrac{4}{16}=\dfrac{6}{16}}$

R's new Share = $\sf{\dfrac{6}{16}}$

• New profit ratio =
• Q : R = 10 : 6

Therefore,

New profit sharing ratio of Q and R = 5 : 3