Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

The Old profit sharing ratio among Radha, Sonu and Tara was 2:2:1. The new profit sharing ratio after Sonu's retirement is 3:2. What will be the gaining ratio?

Options:

3:2

2:1

1:1

2:2

Correct Answer:

1:1

Explanation:

Gaining ratio= New ratio- Old ratio
Radha's gain=3/5-2/5 = 1/5
Tara's gain=2/5-1/5=1/5
Gaining ratio= 1:1