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:
- AOld profit sharing ratio
- BNew profit sharing ratio
- CEqual ratio
- DGaining ratio
Solution & Step-by-step Explanation
If information about the acquisition of the departing partner's share is absent, continuing partners absorb the outgoing share in their old relative profit-sharing ratio. Consequently, their gaining ratio matches their old profit-sharing ratio.