After the retirement, new share is calculated by adding old share to the.......... |
Sacrificed share Gained share New share None of the Above |
Gained share |
The correct answer is option 2- Gained share. New share = Old share + Gained share 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. |