Question : Distribution of 'profit and loss (credit) at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by_____(ii)_____.
Option 1: (i) Remaining Partners, (ii) All Partners.
Option 2: (i) All Partners, (ii) Old partners.
Option 3: (i) New Partner, (ii) All partner
Option 4: (i) Sacrificing Partner, (ii) Incoming partner
Correct Answer: (i) All Partners, (ii) Old partners.
Solution : Answer = (i) All Partners, (ii) Old partners.
In the case of a change in the profit-sharing ratio among existing partners, the distribution of "profit and loss (credit)" is shared by all partners, including the old partners who are affected by the change. However, during the admission of a new partner, this distribution is shared only by the old partners. Hence, the correct option is 2.
Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by _____(ii)_____.
Question : At the time of reconstruction of a partnership due to admission of a new partner, the balance of the Workmen Compensation Reserve will be transferred to:
Question : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their
Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________
Question : At the time of admission of a partner, Employees Provident Fund is:
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