Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Read the following passage and answer the question.

Ravi, Kavi and Sunny are partners in a firm sharing profits and losses in the ratio 4 : 2 : 3. On 1st April 2022, Sunny gives notice for his retirement. His share was taken by Ravi and Kavi in 13 : 11 and goodwill of the firm was valued at ₹ 72000.

After three months, they admit Hari as a new partner for $\frac{1}{5}$th share in firm who brings ₹ 2,00,000 as capital and necessary amount for goodwill in cash which was valued ₹ 80,000 for the firm. Hari acquired his share equally from Ravi and Kavi.

Identify the gaining ratio between Ravi and Kavi on retirement of Sunny.

Options:

4 : 1

2 : 1

13 : 11

1 : 1

Correct Answer:

13 : 11

Explanation:

The correct answer is Option (3) -  13 : 11.

Sunny retires. His share was taken by Ravi and Kavi in 13 : 11.

This is the gaining ratio.