Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio on the retirement of A is 3 : 2, what will be the gaining ratio?

Options:

11:14

03:02

02:03

14:11

Correct Answer:

14:11

Explanation:

Old ratio is 5:2:1
New ratio is 3:2
GAINED SHARE= NEW SHARE - OLD SHARE
Gain of B= 3/5-2/8
              = (24-10)40
              =14/40
Gain of C=2/5-1/8
              = (16-5)40
              =11/40
Gaining Ratio =14/40 : 11/40
                      = 14:11