Question 11 of 38beginner🧠 RememberMCQ1 mark

In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share:-

Exercise: Test your Understanding – I | Q: 4 | (Page 11)
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Explanation

Option (A) is correct. The provided context explicitly states that normally, continuing partners acquire the share of the retiring or deceased partner in their old profit sharing ratio. It further clarifies that 'in the absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of retiring/deceased partner, it is assumed that they will acquire it in the old profit sharing ratio'. In this scenario, the gaining ratio remains the same as the old profit sharing ratio, and the new profit sharing ratio among the remaining partners is the same as their old ratio.