Question

Which of the following is not required to be adjusted at the time of change in the profit sharing ratio?

पर्याय

• Determination of sacrificing ratio and gaining ratio

• Accounting treatment of Goodwill

• Revaluation of assets and reassessment of liabilities

• Determination of the capital of the partners

Answer 1

Determination of the capital of the partners

Explanation:

The sacrificing and gaining ratios must be calculated, goodwill must be modified, and assets and liabilities must be updated when the profit sharing ratio is changed, but the capital of the partners does not have to be determined.