Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

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 ₹60000 on the retirement. The remaining partners decide to share the future profits and losses equally.

How much gain C will get on the retirement of B?

Options:

1/2

2/3

1/3

4/2

Correct Answer:

1/3

Explanation:

Old ratio 3:2:1
New ratio after B retirement 1:1
C gain= 1/2-1/6= 2/6= 1/3