Question

In the absence of any information, the retiring/deceased partner’s share of profit will be acquired by the remaining partners in:

• A. Equal Ratio
• B. Old Profit Sharing Ratio
• C. New Profit Sharing Ratio
• D. Agreed Ratio

Answer 1

The Correct Option is B

In the absence of any specific agreement or information regarding the distribution of the retiring or deceased partner’s share of profits, it is typically acquired by the remaining partners in the Old Profit Sharing Ratio. This means that the remaining partners will continue to share the profits in the same proportion as before the retirement or death of the partner.