In the absence of any information, the retiring/deceased partner's share of profit will be acquired by the remaining partners 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 take over the retiring or deceased partner’s share in their old profit sharing ratio, so their new ratio is the same as their old ratio between themselves.
Why the other options are incorrect
Option (1) Equal Ratio — Incorrect. Equal sharing applies when there is no agreement on sharing profits at all, not to the acquisition of an outgoing partner’s share.
Option (3) New Profit Sharing Ratio — Incorrect. The new ratio is the result of the acquisition, not the basis on which the share is acquired when nothing is said.
Option (4) Agreed Ratio — Incorrect. An agreed ratio applies only when there is information about an agreement, which the question rules out.
NCERT (2026-27 edition):
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