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