Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:
P, Q and R have been sharing profits and losses in the ratio of 5 : 3 : 2. Q retires. His share is taken by P and R in the ratio of 2 : 1. New profit sharing ratio will be:
Options:
06:04
07:03
07:04
06:03
Correct Answer:
07:03
Explanation:
Gain of P= 2/3*3/10=2/10
Gain of R=1/3*3/10=1/10
New Share of P=5/10+2/10=7/10
New Share of R=2/10+1/10=3/10
NPR=7:3