Question

Sia, Tisha, and Aryan were partners sharing profits and losses in the ratio of 4 : 7 : 1. The firm closes its books on 31st March every year.

Tisha died on 1st July, 2024. Sia and Aryan will acquire Tisha’s share in which of the following ratio?

Options

• 1 : 1

• 4 : 1

• 4 : 7

• 7 : 1

Answer 1

4 : 7

Explanation:

When a partner retires or passes away, and no new profit-sharing ratio is specified, it is assumed that the remaining partners will continue to share profits and losses in their existing ratio.