A, B, C are partners sharing profit in t

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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