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If the question states that the remaining partners will continue to share profits in their old ratio, how is their new ratio determined?

Answer and explanation

Correct answer: Use the remaining partners’ old shares as their new ratio, in simplest form

If the remaining partners continue in their old ratio, their relative old shares determine the new ratio. Omit the retiring partner and simplify the remaining shares if possible.

Related tags

Old RatioRetirementNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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