Accountancy, asked by mukeshguptainfo98, 3 months ago

Is it necessary to assess value of goodwill at the change in profit sharing ratio

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Answered by nitya2736

Answer:

Accounting treatment in case of the change in Profit Sharing Ratio (PSR) When there is any change in the profit sharing ratio of partners, Goodwill is valued. One partner may gain a share of profit and others may sacrifice. So, we adjust Goodwill through capital accounts of partners.

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