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When the new profit-sharing ratio of the remaining partners is stated directly, what does it represent?

Answer and explanation

Correct answer: The ratio for sharing future profits

The stated new ratio is the ratio in which the remaining partners will share future profits. Compare it with their old shares if you also need to calculate their gaining ratio.

Related tags

New RatioFuture Profit SharingNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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