Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners in a partnership firm sharing profits in the ratio of 4:3:2. C retires from the business. A acquired 4/9 of C's share and the balance is acquired by B.

How much did A gain from C's retirement?

Options:

7/81

8/81

81/8

None of these

Correct Answer:

8/81

Explanation:

C share is 2/9
A acquire 4/9th of 2/9 means 4/9*2/9= 8/81