A, B & C are partners sharing profits and losses in the ratio of 3:2:1. B decides to retire and the goodwill of the firm is valued at ₹60,000 on the retirement. The remaining partners decide to share the future profits and losses equally. Which partner gains on B's retirement?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- C.
Old ratio 3:2:1
New ratio after B retirement 1:1
Gained share = New share - Old share
C gain = 1/2-1/6
= (3-1)/6
= 2/6
= 1/3
A gain = 1/2-3/6
= (3-3)/6
= 0/6
= 0 means A will not get any gain.
Thus, only C gains.