Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners sharing profits and losses in the ratio of 4:3:2. B decides to retire and the goodwill of the firm is valued at ₹72000 on the retirement. Remaining partners decide to share the future profits and losses in ratio of 5:3.

How much A gains from the retirement of B?

Options:

12/72

13/72

11/72

14/72

Correct Answer:

13/72

Explanation:

Old ratio 4:3:2
 New ratio 5:3
Gain of A= 5/8-4/9= 13/72