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If the retiring partner’s share is \(3/10\) and the remaining partners acquire it in the ratio 2:1, what will be the second partner’s additional share?

Answer and explanation

Correct answer: \(1/10\)

The retiring partner’s \(3/10\) share is divided between the remaining partners in the ratio 2:1. The second partner receives 1 out of the 3 total parts, so the additional share is \(3/10 \times 1/3 = 1/10\). The first partner would receive \(2/10\). Exam tip: Additional share received = retiring partner’s share × the partner’s fraction of the gaining ratio.

Related tags

Retirement Of PartnerGaining RatioNew Profit Sharing RatioAdditional ShareNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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