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
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.
