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Question
Which of the following is not required to be adjusted at the time of change in the profit sharing ratio?
Options
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
MCQ
Solution
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.
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Change in Profit Sharing Ratio Among the Existing Partners
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