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In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:
- a)Old Profit Sharing Ratio
- b)New Profit Sharing Ratio
- c)Equal Ratio
- d)Capital Ratio
Correct answer is option 'A'. Can you explain this answer?
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In the absence of any information regarding the acquisition of share i...
Explanation:
Old Profit Sharing Ratio:
- When a partner retires or decreases their share in a partnership, the remaining partner(s) usually acquire the exiting partner's share in the old profit-sharing ratio.
- The old profit-sharing ratio is the ratio in which profits and losses were shared before the retirement or decrease of the partner.
- This means that the remaining partner(s) will continue to share profits and losses in the same ratio as before the partner's departure.
Reasoning:
- Acquiring the exiting partner's share in the old profit-sharing ratio is a common practice in partnerships.
- This maintains consistency and stability in the partnership's financial arrangements.
- It ensures that the remaining partner(s) do not face sudden changes in their profit-sharing arrangements.
Considerations:
- While acquiring the exiting partner's share in the old profit-sharing ratio is common, partnerships may have specific clauses in their partnership agreements that dictate otherwise.
- It is important for partnerships to have clear agreements in place to address the distribution of profits and losses in the event of a partner's retirement or decrease in share.
Therefore, in the absence of specific information regarding the acquisition of share in profit, it is assumed that the remaining partner(s) will acquire the exiting partner's share in the old profit-sharing ratio.
Old Profit Sharing Ratio:
- When a partner retires or decreases their share in a partnership, the remaining partner(s) usually acquire the exiting partner's share in the old profit-sharing ratio.
- The old profit-sharing ratio is the ratio in which profits and losses were shared before the retirement or decrease of the partner.
- This means that the remaining partner(s) will continue to share profits and losses in the same ratio as before the partner's departure.
Reasoning:
- Acquiring the exiting partner's share in the old profit-sharing ratio is a common practice in partnerships.
- This maintains consistency and stability in the partnership's financial arrangements.
- It ensures that the remaining partner(s) do not face sudden changes in their profit-sharing arrangements.
Considerations:
- While acquiring the exiting partner's share in the old profit-sharing ratio is common, partnerships may have specific clauses in their partnership agreements that dictate otherwise.
- It is important for partnerships to have clear agreements in place to address the distribution of profits and losses in the event of a partner's retirement or decrease in share.
Therefore, in the absence of specific information regarding the acquisition of share in profit, it is assumed that the remaining partner(s) will acquire the exiting partner's share in the old profit-sharing ratio.
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In the absence of any information regarding the acquisition of share i...
In the absence of any information it is assumed that they will require his share in old profit sharing ratio.
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In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer?
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In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer?.
In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer? for Humanities/Arts 2025 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of any information regarding the acquisition of share in Profit of the retiring/decreased partner by the remaining Partner, it is assumed that they will acquire his/her share in:a)Old Profit Sharing Ratiob)New Profit Sharing Ratioc)Equal Ratiod)Capital RatioCorrect answer is option 'A'. Can you explain this answer?.
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