Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners in a partnership firm sharing profits in the ratio of 5:5:4. B retires and his share is divided equally between A & C. What will be the new profit sharing ratio between the remaining partners?

Options:

5:3

13:15

15:13

3:5

Correct Answer:

15:13

Explanation:

Old ratio= 5:5:4
B share 5/14 is taken equally by A & C means 5/14*1/2= 5/28 is taken by each remaining partner.
So A's new share = 5/14+5/28= 15/28
C's new share= 4/14+5/28= 13/28
So, new ratio is 15:13