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 information or agreement between the partners, the retiring or deceased partner's share of profit will be acquired by the remaining partners in the Old Profit Sharing Ratio. This means the remaining partners will divide the share based on the ratio that was in place before the partner’s retirement or death.

Old Profit Sharing Ratio refers to the ratio in which the partners shared the profits and losses of the business before the retirement or death of the partner.

Therefore, the correct answer is (B): Old Profit Sharing Ratio.

Answer 2

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.