Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

After the retirement, new share is calculated by adding old share to the..........

Options:

Sacrificed share

Gained share

New share

None of the Above

Correct Answer:

Gained share

Explanation:

The correct answer is option 2- Gained share.

New share = Old share + Gained share

New profit sharing ratio is the ratio in which the remaining partners will share future profits after the retirement or death of any partner. The new share of each of the remaining partner will consist of his own share in the firm plus the share acquired from the retiring /deceased partner.