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 4:3:2. C retires from the business. A acquired 4/9 of C's share and the balance is acquired by B.

Which partner sacrifice on C's retirement?

Options:

A

B

Both A & C

None of these

Correct Answer:

None of these

Explanation:

The correct answer is option 4 i.e. None of these

C share is 2/9
A acquire 4/9th of 2/9 means 4/9*2/9= 8/81
B acquire= 2/9- 8/81= 10/81
The gaining ratio will be 8/81:10/81 = 8:10 or 4:5

Both partners are gaining. Noone is sacrifices.