Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:
A, B & C are partners sharing profits in ratio of 2:2:1. C dies. What will be the new profit sharing ratio between remaining partners?
Options:
2:1
1:1
3:1
4:1
Correct Answer:
1:1
Explanation:
When any one partner dies or retires and their old ratio is given then old ratio is the new ratio between remaining partner.