Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners in a partnership firm sharing profits and losses in the ratio of 4:3:2. B decides to retire from the firm. Calculate the new profit sharing between the remaining partners in the following condition-

If B gives his whole share to C only.

Options:

5:4

4:5

2:3

3:2

Correct Answer:

4:5

Explanation:

The correct answer is option 2- 4:5.

B share= 3/9
C new share = 2/9+3/9
                    = 5/9
A new share remains same means 4/9
So, the new ratio is 4/9:5/9 or 4:5