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Question : P, Q and R have been sharing profits in the ratio of 8 : 5 : 3. P retires. Q takes 3/16th share from P and R takes 5/16th share from P. New profit sharing ratio will be :

Option 1: 10 : 6

Option 2: 9 : 7

Option 3: 5 : 3

Option 4: 1 : 1


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: 1 : 1


Solution : The new profit-sharing ratio is 1:1.

We can find the new ratio by following the steps given below-

We know that the new profit-sharing ratio is the sum of the old ratio and the gained ratio.

So, new profit-sharing ratio=Old profit-sharing ratio+gaining ratio

P, Q, and R shared profits in 8:5:3.

On P's retirement, Q and R have gained 3/16th and 5/16th of P's share

Q's gained share=3/16

Similarly, R's gained share=5/16

Now, the new profit-sharing ratio of Q=Q's old ratio+gaining ratio

=5/16+3/16

=8/16

Also, the new profit-sharing ratio of R=R's old ratio+gaining ratio

=3/16+5/16

=8/16

So, the profit-sharing ratio of Q and R=8/16:8/16

=1:1

Therefore, the new profit-sharing ratio is 1:1.

Hence the correct answer is option 4.

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