Identity the ratio in which the remaining partners will share future profits after retirement or death of any partner?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- New Profit Sharing Ratio.
The remaining partners will share future profits after retirement or death of any partner in the New Profit Sharing Ratio.
New profit sharing ratio is the ratio in which the remaining partners will share future profits after the retirement or death of any partner. The new share of each of the remaining partner will consist of his own share in the firm plus the share acquired from the retiring /deceased partner.