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
Option 1: Old ratio
Option 2: New ratio
Option 3: Equally
Option 4: None of the above
Correct Answer: Old ratio
Solution : Answer = Old ratio
When a partner retires from a partnership and there is no specific agreement regarding the share of profits to be acquired by the remaining partners, it is assumed that they will acquire the retiring partner's share in the profits in the same ratio as their existing sharing ratio, known as the old ratio. Hence, the correct option is 1.
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
Question : Which of the following statements is false?
Option 1: New Profit-share = Existing (Old) Profit-share + Profit Share taken of Deceased Partner
Option 2: Gaining ratio = new ratio – old ratio
Option 3: New ratio = old ratio + sacrificing ratio
Question : Which of the following statements is incorrect?
Option 1: New Profit-sharing Ratio among remaining or continuing partners is same as their Old Profit-sharing Ratio.
Option 2: Gaining Ratio of remaining or continuing partners is same as their Old Profit-sharing Ratio.
Option 3: Gaining ratio is the ratio in which the remaining partners take the outgoing (retired or deceased) partner's share.
Question : Existing Old Profit Share plus Acquired Profit Share is_____________.
Option 3: Gaining ratio
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