Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A, B & C are partners in a partnership firm sharing profits and losses in the ratio of 4:3:2. B decides to retire from the firm. Calculate the new profit sharing between the remaining partners in the following conditions-

If B gives his share to A & C in the ratio of 3:1, then:

Options:

25:11

36:25

11:25

27:25

Correct Answer:

25:11

Explanation:

Old ratio 4:3:2
B share = 3/9 is taken by other in 3:1 so A takes= 3/9*3/4= 9/36 and C takes= 3/9*1/4= 3/36
A new share= 4/9 + 9/36 = 25/36
C new share= 2/9+3/36= 11/36
So new ratio is 25:11