Accountancy, asked by abhishekkanojiya0951, 1 day ago

5. On retirement of a partner the existing partners (a) continue to share profits and losses in their old profit sharing ratio (b) must change their old profit sharing ratio (C) cannot change their old profit sharing ratio (d) may mutually change their profit sharing ratio​

Answers

Answered by TamilHV
0

Answer:

(b) must change their old profit sharing ratio

Explanation:

The circumstances when change in profit sharing ratio is needed:

a) At the time of admission/retirement/death of a partner

b) When existing partners decide mutually to change the profit sharing ratio. (This may result in the gain for a few partners and loss to others. The partners who are in profit due to this change should compensate the sacrificing partner/partners in the profit sharing ratio.)

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