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Question
Profit share gained by each continuing partner on the death of a partner is ______.
Options
Old Profit Share − New Profit Share.
Old Profit Share + New Profit Share.
New Profit Share + Old Profit Share.
New Profit Share − Old Profit Share.
MCQ
Fill in the Blanks
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Solution
Profit share gained by each continuing partner on the death of a partner is New Profit Share − Old Profit Share.
Explanation:
When a partner dies, their share is given to the remaining partners. To find out how much a continuing partner gained (Gaining Ratio), you subtract their old profit share from their new, increased profit share.
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