Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Radhika, Sadhika and Kanika are partners sharing profits in the ratio of 4 : 3 : 2. Radhika retires; Sadhika and Kanika decided to share profits in future in the ratio of 5 : 3. Calculate gaining ratio.

Options:

3 : 2

5 : 3

21 : 11

1 : 1

Correct Answer:

21 : 11

Explanation:

The correct answer is Option (3) → 21 : 11

Old ratio = 4:3:2
New ratio = 5;3
Radhika retires.
Gain of Sadhika = 5/8-3/9
                        = (45-24)/72
                        =21/72
Gain of Kanika = 3/8-2/9
                       = (27-16)/72
                       =11/72
Gaining ratio = 21/72 : 11/72 or 21:11