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
Dear Student,
The profit on revaluation will be distributed in the old ratio that is 3:4:2 (A:B:C)
So, A's share in revaluation profit = 36000 × 3/9 = Rs 12000
B's share in revaluation profit = 36000 × 4/9 = Rs 16000
C' s share in revaluation profit = 36000 × 2/9 = Rs 8000
Regards
The profit on revaluation will be distributed in the old ratio that is 3:4:2 (A:B:C)
So, A's share in revaluation profit = 36000 × 3/9 = Rs 12000
B's share in revaluation profit = 36000 × 4/9 = Rs 16000
C' s share in revaluation profit = 36000 × 2/9 = Rs 8000
Regards