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
