In the absence of any information regarding the acquisition of share in profits of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in ________.
- AOld Profit Sharing Ratio
- BNew Profit Sharing Ratio
- CEqual Ratio
- DGaining Ratio
Solution & Step-by-step Explanation
When a partner retires or passes away and nothing further is specified about how the surviving partners take up that vacant share, it is standard practice to assume that continuing partners inherit the profit share in their mutual old profit-sharing ratio, which simultaneously functions as their gaining ratio.