In the absence of any information, it is assumed that the remaining partners acquire the share of profit of the retiring/deceased partner in:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Old Profit Sharing Ratio
Unless the partners agree otherwise, the continuing partners are taken to share the outgoing partner’s part in their old profit sharing ratio; their new ratio among themselves is then the same as their old ratio, and the gaining ratio equals the old ratio too.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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