A & B are partner for 5:3. They take C and new profit sharing ratio will be 3:2:1. Profit or loss on revaluation is shared by ____________.

A, B & C in 5:3:2

No worries! We‘ve got your back. Try BYJU‘S free classes today!

A & B in 3:2

No worries! We‘ve got your back. Try BYJU‘S free classes today!

A & B in 5:3

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

A & B in sacrificing ratio

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C A & B in 5:3
When a new partner is admitted into the partnership, assets are revalued and liabilities are reassessed. A revaluation Account is opened for the purpose. This account is debited with all reduction in the value of assets and increase in liabilities and credited with increase in the value of assets and decrease in the value of liabilities. The difference in two sides of account will show profit or loss. This transferred to the capital Accounts of old partners in the old profit sharing ratio.

Suggest Corrections

Similar questions

Rao and Swami are partners in a firm sharing profits and losses in 3 : 2 ratio. They admit Ravi as a new partner for $\frac{1}{8}$ share in the profits. The new profit sharing ratio between Rao and Swami is 4 : 3. Calculate new profit sharing ratio and sacrificing ratio.

Q. Rohit and Mohit are partners in a firm sharing profits in the ratio 5:3. They admit Bijoy as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. The sacrificing ratio of Rohit and Mohit will be:

A and B are partners sharing profits in the ratio of 5:3. They admit C and the new profit sharing ratio is agreed at 4:2:1.The sacrificing ratio will be:

Q. A and B are partners sharing profits in the ratio of

7 : 3

. A surrenders

1 / 7

th of his share and B surrenders

1 / 3

rd of his share in favour of C, a new partner. The new profit sharing ratio and sacrificing ratio will be _________.

Q. Ram and Rahim are partners in a firm sharing profits in the ratio of 5 : 3. They admit Ilias and the new profit sharing ratio is agreed to at 4 : 2 : 1. The sacrificing ratio will be:

Join BYJU'S Learning Program