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mediumMCQCUET Accountancy 2025 24 May Shift 12026Accountancy
1 mark

On retirement or death of a partner, the remaining partners who have gained due to change in the profit sharing ratio should compensate the:

  1. A
    Remaining partners (who have sacrificed) as well as retiring partners
  2. B
    Remaining partners only (who have sacrificed)
  3. C
    Retiring partners only
  4. D
    None of the partners

Solution & Step-by-step Explanation

Upon the retirement or death of a partner, the gaining partners must compensate those partners whose profit share has reduced (sacrificed). This includes the retiring/deceased partner as well as any continuing partner who has suffered a sacrifice in their profit-sharing ratio.

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On retirement or death of a partner, the remaining partners who have gained due to change in the profit sharing ratio should compensate the:
A
Remaining partners (who have sacrificed) as well as retiring partners
B
Remaining partners only (who have sacrificed)
C
Retiring partners only
D
None of the partners

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PartnershipRetirement/Death

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