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

3:2

2:3

14:11

Correct Answer:

14:11

Explanation:

The correct answer is option 4- 14:11.

Old ratio is 5:2:1 (A, B & C)
A retires
New ratio is 3:2 (B & C)

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