At the admission of a new partner, if the old profit-sharing ratio of the existing partners is not given, in what ratio are they generally assumed to share profits?

Correct answer: Sharing profits equally

When the old profit-sharing ratio is not provided, the existing partners are generally assumed to share profits equally. This assumption is made only when no other information is available; the incoming partner’s share is determined separately according to the admission terms. Exam tip: if the old ratio is absent, take the existing partners’ ratio as equal.