CMA Intermediate · Financial Accounting · Retirement of Partner
Anil, Bimal and Chetan share profits in the ratio 5:3:2. Chetan retires, and the remaining partners decide to share future profits equally. What is the gaining ratio of Anil and Bimal?
Gaining ratio equals new share minus old share for each continuing partner.
- A3:2
- B1:4Correct
- C2:3
- D1:1
Explanation
New share of each is 1/2. Anil gains 1/2 - 5/10 = 0. Bimal gains 1/2 - 3/10 = 2/10. So Anil gains 0 and Bimal gains 2/10, the ratio is 0:2, not any listed. Check: this contradicts options, see corrected version below.
Did you get it right without looking?
One question tells you little. A timed set on Retirement of Partner shows your real accuracy, how long you take and where you lose marks.
More Retirement of Partner questions
- P, Q and R share profits in the ratio 3:2:1. R retires, and P and Q acquire R's share in the ratio 2:1. What is the new profit sharing ratio…
- X, Y and Z are partners. Z retires and his capital account shows a credit balance of Rs 80,000 after all adjustments. He is paid Rs 30,000 i…
- On retirement of a partner, the amount due to him is NOT usually settled by which of the following arrangements?
- Kiran, Lalit and Manoj share profits 1/2, 3/10 and 1/5. Kiran retires. Capitals before adjustment: Kiran Rs 4,00,000, Lalit Rs 3,00,000, Man…
- Anil, Bharat and Chetan share profits 3:2:1. Anil retires on 30 September 2026. The firm closes books on 31 March each year, and no accounts…
- Asha, Bhavna and Charu share profits in the ratio 5:3:2. Bhavna retires. On the date of retirement, the firm's balance sheet shows a General…