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