Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

P, Q & R are partners in a partnership firm named RAWAT SOLUTIONS and sharing profits in the ratio of 4:3:1. Q retires and sold his share of profits to other partners for ₹8100. ₹3600 was paid by P and ₹4500 was paid by R. Profit for the year after Q's retirement is ₹10500.

What will be the R's share in profit?

Options:

₹3500

₹4500

₹7000

₹5000

Correct Answer:

₹3500

Explanation:

The correct answer is option 1 i.e. ₹3500.

As Q is retired from the firm and this profit is after his retirement so it will be distributed in the new ratio means 2:1.
P's share = 10500 x 2/3
               = 21000/3
               = 7000
R's share = 10500 x 1/3
               = 3500