Unless agreed otherwise, it is presumed that the continuing partners gain in their................ and hence their............. is the same as their old profit sharing ratio.

Old profit sharing ratio, gaining ratio

The correct answer is option 2- Old profit sharing ratio, gaining ratio.

Normally, the continuing partners acquire the share of retiring or deceased partners in the old profit sharing ratio, and there is no need to compute the new profit sharing ratio among them, as it will be same as the old profit sharing ratio among them. In fact, in the absence of any information regarding profit sharing ratio in which the remaining partners acquire the share of retiring/deceased partner, it is assumed that they will acquire it in the old profit sharing ratio and so share the future profits in their old ratio.