Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners in a partnership firm sharing profits and losses in the ratio of 4:3:2. B decides to retire from the firm. Calculate the new profit sharing between the remaining partners in the following conditions-

If B gives his whole share to A only.

Options:

2:3

3:2

2:7

7:2

Correct Answer:

7:2

Explanation:

The correct answer is option 4- 7:2.

B share = 3/9

A new share = 4/9 + 3/9
                     = 7/9

C new share remains same means 2/9

So, the new ratio is 7/9:2/9 or 7:2