Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B, C & D are partners sharing profits in the ratio of 2:1:2:1. C retires from the firm and the remaining partners decide to share future profits equally. What will be the gaining ratio?

Options:

2:1:0

3:1:0

0:1:1

2:1:0

Correct Answer:

0:1:1

Explanation:

Old ratio= 2:1:2:1
New ratio= 1:1:1
C retires means A gain= 1/3- 2/6= 0/6 = 0 means no gain
B gain= 1/3-1/6= 1/6
D gain= 1/3-1/6= 1/6
So, B & D gain equally or 1:1