Question 8 of 38beginner🔧 ApplyMCQ1 mark

Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5:3:2. If Vivek retires, the New Profit Sharing Ratio between Abhishek and Rajat will be–

Exercise: Test your Understanding – I | Q: 1 | (Page 11)
For More Understanding

Explanation

Option B is correct. According to the provided context, in the absence of any information regarding the specific ratio in which remaining partners acquire the retiring partner's share, it is assumed they acquire it in their old profit sharing ratio. Consequently, the new profit sharing ratio between the continuing partners remains the same as their old ratio. Since Abhishek and Rajat previously shared profits in the ratio of 5:3, their New Profit Sharing Ratio will remain 5:3.