Question

A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was ₹ 36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as:

Options

• A ₹ 16,000; B ₹ 12,000; C ₹ 8,000

• A ₹ 12,000; B ₹ 16,000; C ₹ 8,000

• A ₹ 22,500; C ₹ 13,500

• A ₹ 23,625; C ₹ 12,375

Answer 1

A ₹ 12,000; B ₹ 16,000; C ₹ 8,000

Explanation: 

Profit on revaluation is always shared among all existing partners in the old profit-sharing ratio, even if one partner is retiring.

Here, A:B:C share profits in the old ratio 3:4:2, total parts = 9.

So, out of ₹ 36,000 revaluation profit:

A’s share = 3/9 × 36,000` = ₹ 12,000

B’s share = 4/9 × 36,000 = ₹ 16,000

C’s share = 2/9 × 36,000 = ₹ 8,000