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:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Old Profit Sharing Ratio
Where nothing is said about how the continuing partners take over the outgoing partner’s share, they are taken to acquire it in their old profit sharing ratio; their new ratio is then their old ratio between themselves.
NCERT (2026-27 edition):
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