Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
In the absence of an express agreement as to who will contribute to new partner's share of profit, it is implied that the old partners will contribute in the..............ratio.
Options:
Equally
In the ratio of their capitals
In their old profit sharing ratio
As per the Partnership Act 1932
Correct Answer:
In their old profit sharing ratio
Explanation:
In the absence of any information, it is implied that old partners will contribute to new partners share of profit in the ratio of old profit sharing ratio i.e., sacrificing ratio will be same as old ratio.