In case there is no information regarding the acquisition of a share in profit of the retiring/deceased partner by the remaining partners, the assumption is that they will acquire his/her share in the:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) :Old profit sharing ratio
When a partner retires or dies, the continuing partners take over the outgoing partner’s share.
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If the partnership agreement or partners clearly specify how the share is to be acquired, that ratio (gaining ratio) is used.
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But, if no information is provided, the law assumes that the remaining partners acquire the outgoing partner’s share in their old profit sharing ratio.
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