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After a partner retires, what should be the sum of the new profit-sharing ratios of the remaining partners?

Answer and explanation

Correct answer: The whole profit (1 or 100%)

The new ratios of the remaining partners must add up to 1 (100%). After retirement, they share the entire future profit, so their combined share is the whole profit.

Related tags

Partnership AccountingRetirementNew Profit-Sharing RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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