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 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:

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