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?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 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 sacrifices.