Get complete step-by-step solutions for T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1 - Chapter No. 6 - Retirement/ Death of a Partner. Study double-entry system details, practice timed problems, and verify answers directly.
Chapter No. 6 - Retirement/ Death of a Partner
Question 01 Chapter 6 of +2-A
01. A, B and C were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if C retires.
| Old Ratio A, B and C | = | 1 | : | 2 | : | 1 |
| 2 | 5 | 10 | ||||
| = | 5 | : | 4 | : | 1 |
As we can see, no information is given as to how A and B are acquiring C's profit share after his retirement, so the new profit sharing ratio between A and B is calculated just by crossing out the C’s share. That is, the new ratio becomes 5 : 4.
∴ New Profit Ratio A and B = 5 : 4
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Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.