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mediumMCQCUET Accountancy 2023 28 May Shift 12026Accountancy
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On the retirement or death of a partner, the remaining partners who gain due to the change in profit-sharing ratio must compensate:

  1. A
    No partner
  2. B
    The retiring partner only
  3. C
    The remaining partners only (who have sacrificed)
  4. D
    The remaining partners (who have sacrificed) as well as the retiring partner

Solution & Step-by-step Explanation

When the profit-sharing ratio changes due to retirement or death, any partner whose profit share decreases is a sacrificing partner. The remaining partners who gain must compensate all sacrificing partners—which includes the retiring/deceased partner as well as any continuing partner whose share has decreased—in proportion to their respective sacrifices.

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On the retirement or death of a partner, the remaining partners who gain due to the change in profit-sharing ratio must compensate:
A
No partner
B
The retiring partner only
C
The remaining partners only (who have sacrificed)
D
The remaining partners (who have sacrificed) as well as the retiring partner

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