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If new ratio is not given and continuing partners remain in their old mutual ratio what is the gaining ratio assumed?

Answer and explanation

Correct answer: Old mutual ratio of continuing partners

When new ratio is absent the old mutual ratio of continuing partners is assumed to continue. They gain the outgoing partner share in that ratio.

Related tags

GoodwillNo-New-RatioOld-Mutual-RatioGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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