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Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu's share in the ratio of 2 : 1. - Accounts

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Question

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu's share in the ratio of 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death will be ______.

Options

  • 2 : 1

  • 1 : 2

  • 5 : 4

  • 4 : 5

MCQ
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Solution

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu's share in the ratio of 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death will be 5 : 4.

Explanation:

Original Shares of Aaroh, Bhuvan, and Charu: Aaroh’s share = `1/9`

Bhuvan’s share = `2/9`

Charu’s share = `6/9`

Charu’s Share Distribution: Total share of Charu = `6/9`

Aaroh and Bhuvan acquired Charu’s share in the ratio of 2 : 1

Aaroh’s share from Charu = `2/3xx6/9`

= `12/27-4/9`

Bhuvan’s share from Charu = `1/3xx6/9=6/27=2/9`

New Shares of Aaroh and Bhuvan: 

Aaroh’s new share = `1/9+4/9=5/9`

Bhuvan’s new share = `2/9 + 2/9=4/9`

New Profit - Sharing Ratio

Aaroh : Bhuvan = `5/9:4/9`

= 5 : 4

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Chapter 4: Retirement or Death of a Partner - OBJECTIVE TYPE QUESTIONS [Page 4.192]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 4 Retirement or Death of a Partner
OBJECTIVE TYPE QUESTIONS | Q 16. | Page 4.192
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