Practicing Success
A, B & C are partners sharing profits in proportion to their capital. B retired from the firm on 1st April 2021 and the remaining partners decided to carry on the partnership with a profit-sharing ratio of 3:1. At the time of retirement, their capital accounts show balance- A- ₹450000, B- ₹300000, and C ₹150000. There is also a debit balance of P & L A/c of ₹12000. The firm has debtors of ₹100000 on which ₹2000 is made for provision for doubtful debts. The assets and liabilities of the partnership firm are as follows- |
In which ratio, do the remaining partners compensate to retiring partner? |
3:1 1:3 3:2 2:3 |
3:1 |
Old ratio= 3:2:1 |