Partnership

Retirement/Death

Medium

common

Naveen, Suresh and Tarun are partners, sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio of 2:1. Calculate the new share of profit :

3:7

5:7

7:3

9:5

✅ Correct Option: 3

Old Profit Sharing Ratio:

Naveen : Suresh : Tarun = 5 : 3 : 2

Total parts = 5 + 3 + 2 = 10

Suresh's share = $\frac{3}{10}$

When Suresh retires, his share of $\frac{3}{10}$ is taken by Naveen and Tarun in the ratio 2:1.

Gain from Suresh's share:

Naveen's gain = $\frac{2}{3} \times \frac{3}{10} = \frac{2}{10}$

Tarun's gain = $\frac{1}{3} \times \frac{3}{10} = \frac{1}{10}$

New Profit Sharing Ratio:

Naveen's new share = Old share + Gain = $\frac{5}{10} + \frac{2}{10} = \frac{7}{10}$

Tarun's new share = Old share + Gain = $\frac{2}{10} + \frac{1}{10} = \frac{3}{10}$

Therefore, New ratio = $\frac{7}{10} : \frac{3}{10}$ = 7 : 3

2026: 12 May Shift 1

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Match List-I with List-II

List-I	List-II
(A) Death of an existing partner	(I) Executor's Account
(B) Transfer of closing balance of Deceased partner's capital Account	(II) Profit for the Intervening Period
(C) Bad Debts Recovered	(III) Debit Side of Revaluation Account
(D) Liability not recorded in Balance Sheet	(IV) Credit side of Revaluation Account

Choose the correct answer from the options given below:

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When a Partner dies in the Middle of the Year, which accounting adjustment / calculation is not done for the intervening period?

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Champa, Roma and Sunakshi are partners sharing profits in the ratio of 5:3:2. Roma retires, the new profit sharing ratio between Champa and Sunakshi will be 1:1. The goodwill of the firm is valued at Rs. 4,00,000, Roma's share of goodwill will be adjusted:

2025: 30 May Shift 1

In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in:

Naveen, Suresh and Tarun are partners, sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio of 2:1. Calculate the new share of profit :

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