Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B and C are sharing profits and losses in the ratio of 5:3:2. C retires. His share will be distributed between A and B equally. Calculate new ratio of A and B.

Options:

5:3

1:1

3:2

2:3

Correct Answer:

3:2

Explanation:

New Ratios-= Old ratio + Gaining Ratio

A-= 5/10 + 2/20 = 10+2/20 = 12/20

B  - 3/10 + 2/20 = 6+2/ 20 = 8/20
12:8 = 3:2