Question : In the absence of any information detailing the remaining partners' acquisition of the retiring or deceased partner's share of profits. It is assumed that they'll acquire his or her shares in -
Option 1: Old Profit sharing ratio
Option 2: New profit sharing ratio
Option 3: Equal Ratio
Option 4: None of the above
Answer (1)
4th Jan, 2024
Correct Answer: New profit sharing ratio
Solution : According to the Indian Partnership Act, 1932, if the remaining partners do not have any knowledge of the acquisition of the retiring or deceased partner's portion of the profits. It is envisioned that they will purchase his or her shares in the previous profit-sharing arrangement.
Hence the correct answer is option 2.
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