Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Rani, Sandhya and Kangana are partners sharing profits in the ratio of 4:3:2 Rani retires. Sandhya and Kangana decided to share profits in the future in the ratio of 5:3. Gaining ratio of Sandhya and Kangana will be:

Options:

11:21

21:11

31:12

23:13

Correct Answer:

21:11

Explanation:

Gaining ratio = New share - old share
Gain of Sandhya = 5/8 - 3/9
                           = (45-24) / 72
                           = 21/72
Gain of Kangana = 3/8 - 2/9
                           = (27-16) / 72
                           = 11/72
Gaining ratio = 21/72 : 11/72
                     = 21:11