Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Lal, Bal and Pal were partners sharing profit & loss in ratio 5 : 3 : 2. Bal retired, Lal and Pal decided to share future profit & loss in the ratio 2 : 1. Determine the Gaining ratio between Lal and Pal :

Options:

5 : 2

5 : 4

1 : 1

2 : 1

Correct Answer:

5 : 4

Explanation:

The correct answer is Option (2) - 5 : 4.

Old ratio = 5:3:2 (Lal, Bal and Pal)
New ratio = 2:1 (Lal and Pal)

Gain of Lal = 2/3 - 5/10
                = (20-15)/30
                = 5/30

Gain of Pal = 1/3 - 2/10
                 = (10-6)/30
                 = 4/30

Gaining ratio = 5/30 : 4/30
                    = 5:4