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 4:3:2. B decides to retire and the goodwill of the firm is valued at ₹72000 on the retirement. Remaining partners decide to share the future profits and losses in ratio of 5:3.

What will be the gain of C on the retirement of B?

Options:

13/72

12/72

11/72

15/72

Correct Answer:

11/72

Explanation:

Old ratio 4:3:2
New ratio 5:3
Gain of C= 3/8-2/9= 11/72