12th Class Accountancy Change in Profit Sharing Ratio Among Existing Partner Question Bank MCQs - Reconstitution Of a Partnership Firm : Change in Profit Sharing Ratio

  • question_answer
    At the time of change in profit sharing ratio, sacrificing ratio is determined so that:

    A) assets and liabilities are shown at their present values.

    B) gaining partner is not put to an advantage and sacrificing partner is not put to disadvantage and vice versa.

    C) gaining partner can compensate the sacrificing partner for the sacrifice of profit share.

    D) assets and liabilities are shown at their current estimated values.

    Correct Answer: C

    Solution :

    [c] gaining partner can compensate the sacrificing partner for the sacrifice of profit share.


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