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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

In case of retirement or death of a partner, all accumulated profit and losses are transferred in capital account of partners in the:

  1. A
    new profit sharing ratio
  2. B
    old profit sharing ratio
  3. C
    capital ratio
  4. D
    none of the above

Solution & Step-by-step Explanation

Accumulated profits and losses are earned prior to the partner's retirement or death, and hence are distributed among all partners (including the retiring/deceased) in their old profit-sharing ratio.

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In case of retirement or death of a partner, all accumulated profit and losses are transferred in capital account of partners in the:
A
new profit sharing ratio
B
old profit sharing ratio
C
capital ratio
D
none of the above

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