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Question : At the time of change in profit sharing ratio Sacrificing partner is ------ and gaining partner is ----- for the adjustment  of goodwill.

Option 1:  Credited, debited 

Option 2: Debited, credited 

Option 3: Debited, debited

Option 4: Credited, credited


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Credited, debited


Solution : Answer = Credited, debited

When there's a change in profit-sharing ratio, the sacrificing partner's capital decreases, so they are credited. The gaining partner's capital increases, so they are debited. This adjustment reflects the redistribution of goodwill.
Hence, the correct option is 1.

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