Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

R, S and K are partners sharing profits in the ratio 8:6:4. On the retirement of R, the new profit sharing ratio between S and K was decided to be 5:3. The Gaining Ratio is......

Options:

5:3

21:11

4:3

11:19

Correct Answer:

21:11

Explanation:

The correct answer is Option 1 - 21:11.

Old ratio = 8:6:4 (R, S and K)
or it can be
Old ratio = 4:3:2 (R, S and K)

R retires
New ratio = 5:3 (S and K)

Gaining share = New share - old share

Gain of Sana = 5/8 - 3/9
                   = (45-24) / 72
                   = 21/72

Gain of Kamana = 3/8 - 2/9
                        = (27-16) / 72
                        = 11/72

Gaining ratio = 21/72 : 11/72
                   = 21:11