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If the retiring partner’s share is \(\frac{3}{10}\) and the remaining partners acquire this share in the ratio \(2:1\), what will be the first partner’s additional share?

Answer and explanation

Correct answer: \(\frac{1}{5}\)

The first partner receives \(\frac{2}{2+1}=\frac{2}{3}\) of the retiring partner’s share. Therefore, the additional share is \(\frac{3}{10}\times\frac{2}{3}=\frac{1}{5}\). The value \(\frac{2}{3}\) is only the first partner’s proportion of the gain, not the total additional share. In exams, multiply the retiring partner’s share by the relevant fraction of the gaining ratio.

Related tags

Partnership AccountsRetirement Of PartnerGaining RatioNew RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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