Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in:

Options:

Gaining ratio

Equal Ratio

New Profit Sharing Ratio

Old Profit Sharing Ratio

Correct Answer:

Old Profit Sharing Ratio

Explanation:

The correct answer is Option (4) → Old Profit Sharing Ratio