Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

In the absence of any information regarding acquisition of share of the retiring partner by the remaining partners, it is assumed that the share will be acquired in the..............

Options:

Old Profit Sharing Ratio

New Profit Sharing Ratio

Capital Ratio of remaining partners

None of the Above

Correct Answer:

Old Profit Sharing Ratio

Explanation:

The correct answer is option 1- Old Profit Sharing Ratio.

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.