Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:
A, B, C are partners sharing profit in the ratio of 2:2:1. C retired. What will be the new profit sharing ratio between A and B?
Options:
2:1
1:1
3:1
4:1
Correct Answer:
1:1
Explanation:
As C is retiring, the ratio between A and B is 2:2 i.e. 1:1