Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

The old profit-sharing ratio among Rajender, Satish, Tejpal was 2:2:1. The new Profit Sharing Ratio after Satish's retirement is 3: 2. The gaining ratio is:

Options:

3:2

2:1

1:1

2:3

Correct Answer:

1:1

Explanation:

Old ratio = 2:2:1
New ratio = 3:2
Gaining share of Rajender = 3/ 5 -2/5
                                          = 1/5
Gaining share of Tejpal = 2/ 5 -1/5
                                          = 1/5
Gaining ratio = 1/5:1/5
                      = 1:1