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If the continuing partners acquire the retiring partner’s share in their old mutual ratio, what will their new ratio be?

Answer and explanation

Correct answer: Old mutual ratio of the continuing partners

When the continuing partners acquire the retiring partner’s share in their old mutual ratio, each gains in proportion to their existing shares. Their mutual ratio therefore stays unchanged, so the new ratio is the old mutual ratio of the continuing partners.

Related tags

New RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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