Partnership

Retirement/Death

Medium

common

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Tarun retires from the firm and his share was taken over by Naveen and suresh in the ratio 2:1. In such a case, the new profit sharing ratio will be:

11:17

19:11

11:19

11:12

✅ Correct Option: 2

Initial profit sharing ratio of Naveen, Suresh and Tarun = 5:3:2

Total parts = 5 + 3 + 2 = 10

Individual shares:

Naveen = $\frac{5}{10}$
Suresh = $\frac{3}{10}$
Tarun = $\frac{2}{10}$

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

Tarun's share acquired by Naveen = $\frac{2}{3} \times \frac{2}{10} = \frac{4}{30}$

Tarun's share acquired by Suresh = $\frac{1}{3} \times \frac{2}{10} = \frac{2}{30}$

New profit sharing ratio:

Naveen's new share = Original share + Share acquired from Tarun

= $\frac{5}{10} + \frac{4}{30}$ = $\frac{15}{30} + \frac{4}{30}$ = $\frac{19}{30}$

Suresh's new share = Original share + Share acquired from Tarun

= $\frac{3}{10} + \frac{2}{30}$ = $\frac{9}{30} + \frac{2}{30}$ = $\frac{11}{30}$

New profit sharing ratio = $\frac{19}{30} : \frac{11}{30}$ = 19:11

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Gaining Ratio	I.	Average Profit × 100/ Normal Rate of Return
B.	Goodwill	II.	Old Ratio - New Ratio
C.	Sacrificing Ratio	III.	Super Profit × 100/ Normal Rate of Return
D.	Capitalised Value	IV.	New Ratio - Old Ratio

Choose the correct answer from the options given below:

2025: 14 May Shift 1

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

2026: 13 May Shift 2

Rakesh (an existing partner) has been retired from partnership firm and the amount payable to him after all adjustments, works out to be Rs. 1,80,000 but the remaining partners Param and Qaireshi, agreed to pay him Rs. 2,25,000 in full settlement of his claim. What does this extra ₹45,000 paid to Rakesh represent?

2023: 20 June Shift 2

A, B, C were partners in a partnership firm their profit sharing ratio was 5:3:2. B retires and the new profit sharing ratio between A and C was 3:2. Calculate gaining ratio.

2026: 11 May Shift 1

Arrange the following steps in the order of the accounting treatment in case of death of a partner.

A. Adjustment of capital account of the existing partner.

B. Transfer of share of goodwill to deceased partner's capital account.

C. Transfer of amount from deceased partner's capital account to executor's account.

D. Calculation of New Profit Ratio and Sacrificing Ratio.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

Arun, Bijay and Harish are partners in a firm sharing profits in the ratios of 8:5:3. It is felt that Bijay will no more be able to actively participate in the affairs of the firm. Hence, with effect from April 1, 2025, they decided that, in future they will share the profits in the ratio of 2:1:2. Bijay will:

Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Tarun retires from the firm and his share was taken over by Naveen and suresh in the ratio 2:1. In such a case, the new profit sharing ratio will be:

Solution

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