In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in............
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Old Profit Sharing Ratio
When nothing is said about how the retiring or deceased partner’s share is taken over, the remaining partners are taken to acquire it in their old profit sharing ratio. Their gaining ratio is then the same as their old ratio, and the new ratio need not be worked out separately.
Why the other options are incorrect
Option (2) New Profit Sharing Ratio — Incorrect. The new ratio is the result of taking over the share, not the basis assumed for taking it over; with no information it is not given.
Option (3) Equal Ratio — Incorrect. Equal sharing is the rule for profits when there is no partnership deed; it is not the assumption for acquiring an outgoing partner’s share.
Option (4) Sacrificing Ratio — Incorrect. On retirement or death the remaining partners gain; a sacrificing ratio belongs to admission, where the old partners give up a share.
Note: In the original question, both Option (1) and Option (4) were correct as per the NTA Answer Key. The paper printed Option (1) as Old Profit Sharing Ratio and Option (4) as Gaining Ratio. For the benefit of students and to ensure a single answer, Option (4) has been changed to Sacrificing Ratio.
NCERT (2026-27 edition):
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