P, Q, R are partners sharing profits in 2 : 2 : 1, they admitted S for 1/8 share which he acquired entirely from P. Calculate new profit sharing ratio?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1- 11 : 16 : 8 : 5
Old ratio of P, Q & R= 2:2:1
S admitted with 1/8
1/8 share of S is given by P means P sacrifices 1/8 from his share.
P's new share = 2/5 - 1/8
=(16-5)/40
= 11/40
Q's new share = 2/5
= 16/40
R's new share = 1/5
= 8/40
S's share = 1/8
= 5/40
So, new ratio = 11/40 : 16/40: 8/40: 5/40
= 11:16:8:5