Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Identity the ratio in which the remaining partners will share future profits after retirement or death of any partner?

Options:

Old Profit Sharing Ratio

New Profit Sharing Ratio

Gaining Ratio

Sacrificing Ratio

Correct Answer:

New Profit Sharing Ratio

Explanation:

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.