P, Q and R are partners sharing profit in the ratio 5 : 3 : 2. On 1st April,2022, they admit S as a new partner for 1/5 share which he acquires from P and Q equally. Calculate new profit share ratio. R has decided to retain his original share.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 2 : 1 : 1 : 1.
Old ratio = 5 : 3 : 2 (P, Q and R)
R retains old share means 2/10
S admits with 1/5
P and Q sacrifice equally means 1/10 each.
New share = Old share - Sacrifice share
New share of P = 5/10 - 1/10
= 4/10
New share of Q = 3/10 - 1/10
= 2/10
New ratio between P, Q, R & S = 4/10 : 2/10 :2/10 :1/5
= 4/10 :2/10 :2/10 : 2/10
= 2:1:1:1