Accumulated profits and reserves are distributed to partners in their ___

Sacrificing Ratio

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New Ratio

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Old Ratio

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Gaining ratio

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Solution

The correct option is C
Old Ratio

Accumulated profits and reserves are distributed to partners in their old profit sharing ratio.

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Similar questions

Q. State the ratio in which the old partners share accumulated profits, reserves and losses.

Q. Credit balance of Profit & Loss Account shown in the liabilities side is accumulated profit and at the time of admission of a new partner, it is fully distributed among old partners in their old ratio.

If the value of goodwill is Rs. 3,00,000. The PSR of A, B and C is 1:1:1. A retires and new profit sharing ratio is 1:1. B and C Capital accounts will be debited with what amount?

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.

A, B

and

C

are partners sharing profits in the ratio of

2 : 2 : 1

D

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1 / 6^{t h}

share.

C

will retain his original share. Calculate the new profit sharing ratio and sacrificing ratio.

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Accumulated profits and reserves are distributed to partners in their ___

The correct option is C Old Ratio Accumulated profits and reserves are distributed to partners in their old profit sharing ratio.

The correct option is C
Old Ratio

Accumulated profits and reserves are distributed to partners in their old profit sharing ratio.