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
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.
Question : Which of the following statements is incorrect?
Question : In the absence of any information regarding the share in profit of retiring partners by the remaining partners, it is assumed that they will acquire his or her share in
Question : On the partner's passing, The remaining partner(s) who have benefited from the altered profit-sharing ratio should compensate the -
Question :
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Question : The retiring partner receives payment for giving up a portion of the company's future revenues in favour of the remaining partners. The remaining partners provide such compensation amount in the following ways -
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