Question : The retiring partner receives payment for giving up a portion of the company's future revenues in favour of the remaining partners. The remaining partners provide such compensation amount in the following ways -
Option 1: Gaining Ratio
Option 2: Sacrificing Ratio
Option 3: Capital Ratio
Option 4: Profit Sharing Ratio
Correct Answer: Gaining Ratio
Solution : Retiring Partners are compensated in a gaining ratio by the surviving partners for giving up a portion of the firm's future profit in favour of the remaining partner.
Hence the correct answer is option 1 .
Question : Which of the following statements is incorrect?
Question :
Accumulated losses on the retirement of a partner are
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Question : In the event of change in profit-sharing ratio, profit and loss (Dr) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
Question : In the event of change in profit-sharing ratio, profit and loss (credit balance) existing in the Balance Sheet is transferred to Capital Accounts of partners in their
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