Question

At the time of change in profit sharing ratio, it is important to determine the ______ and ______ of partners.

Options

• Sacrificing ratio, gaining ratio

• Profit, loss

• Goodwill, profit

• Capital, Profit

Answer 1

At the time of change in profit sharing ratio, it is important to determine the Sacrificing ratio and gaining ratio of partners.

Explanation:

This may result in some partners gaining and others losing. In the profit sharing ratio, the partners who profit from the change should compensate the sacrificing partner/partners.