In the absence of any information regarding the acquisition of a share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share:
- AEqual Ratio
- BOld Profit Sharing Ratio
- CNew Profit Sharing Ratio
- DFuture Profit Sharing Ratio
Solution & Step-by-step Explanation
If a partner retires or dies and no details are provided about how the remaining partners acquire the departing partner's share, it is assumed that the remaining partners acquire it in their existing Old Profit Sharing Ratio. Consequently, their gaining ratio and their new profit sharing ratio remain identical to their old mutual proportion.