Question : Unless agreed otherwise, it is presumed that the continuing partners gain in their _____________and hence their ___________is the same as their old profit-sharing ratio.
Option 1: New ratio and gaining ratio
Option 2: Old ratio and gaining ratio
Option 3: Old ratio and sacrificing ratio
Option 4: None of the above
Correct Answer: New ratio and gaining ratio
Solution : Answer = New ratio and gaining ratio.
In the absence of any agreement, continuing partners are presumed to gain in their new ratio, and therefore, their gaining ratio is assumed to be the same as their old profit-sharing ratio. This ensures continuity and fairness in the distribution of profits among partners in the partnership firm. Hence, the correct option is 1.
Question : Which of the following statements is incorrect?
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
Question : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
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