Reema and Seema share profits in the ratio 5:3. In the reconstituted partnership, Neema receives \(\frac{1}{4}\) of the total profit and Reema’s new share is \(\frac{1}{2}\). What will be Seema’s new profit-sharing share?

Correct answer: \(\frac{1}{4}\)

The shares of all partners in the reconstituted firm must add up to 1. Therefore, Seema’s share is \(1-\frac{1}{2}-\frac{1}{4}=\frac{1}{4}\). If Seema’s share were \(\frac{3}{8}\), the total would become \(\frac{9}{8}\), which is impossible. Exam tip: subtract the known shares from 1 to find a missing share in the new profit-sharing ratio.