Accountancy Part AReconstitution of Partnership Firm: Retirement and Death

A, B and C are partners sharing profits in the ratio of 6 : 3 : 2. If…

A, B and C are partners sharing profits in the ratio of 6 : 3 : 2. If C retires, the new profit sharing ratio between A and B will be:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 2 : 1

With no other information, A and B take C’s share in their old ratio, so they go on sharing in their old ratio between themselves.

A : B = 6 : 3

= 2 : 1

NCERT (2026-27 edition):
Test your Understanding

Extract from the NCERT textbook

NCERT (2026-27 edition):
New Profit Sharing Ratio – “… In fact, in the absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of retiring/deceased partner, it is assumed that they will acquire it in the old profit sharing ratio and so share the future profits in their old ratio. For example, Asha, Deepti and Nisha are partners in a firm sharing profits and losses in the ratio of 3:2:1. If Deepti retires, the new profit sharing ratio between Asha and Nisha will be 3:1, unless they decide otherwise.”