A and B were partners in a firm sharing

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Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

A and B were partners in a firm sharing profits in the ratio 3:2. They decided to share profits equally from 1st April. Who will gain and sacrifice?

Options:

A - Gaining, B - Sacrificing

B - Gaining A - Sacrificing

A & B are gaining

A & B are sacrificing

Correct Answer:

B - Gaining A - Sacrificing

Explanation:

S.R = Old - New
A = 3/5 - 1/2 = (6-5)/10 =1/10 (Sacrifice)
B = 2/5 - 1/2 = (4 - 5)/10 = -1/10 (Gain)