Question : On the partner's passing, The remaining partner(s) who have benefited from the altered profit-sharing ratio should compensate the -
Option 1: Remaining partners (Who have sacrificed) as well as deceased partner
Option 2: Deceased partner only
Option 3: Remaining partners only (Who have sacrificed)
Option 4: None of the above
Answer (1)
21st Jan, 2024
Correct Answer: Remaining partners (Who have sacrificed) as well as deceased partner
Solution : When a partner retires or passes away, the surviving partner(s) who benefited from the change in the profit-sharing ratio shall make up the difference by making payments to both the surviving and retiring partners.
Hence the correct answer is option 1.
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