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 following:
- AGaining Ratio
- BOld Profit Sharing Ratio
- CNew Sharing Ratio
- DEqual Ratio
Solution & Step-by-step Explanation
If a partner retires or passes away and no explicit acquisition fractions are stated, the remaining partners automatically inherit the outgoing partner's profit share in their existing relative Old Profit-Sharing Ratio. Consequently, their individual gaining ratio matches their old profit-sharing proportions.