Question

At the time of admission of a partner in an existing partnership business, what happens with the profit sharing ratio?

• A. none of the above
• B. no treatment
• C. decide and calculate new profit sharing ratio
• D. continue with existing profit sharing ratio

Answer 1

The correct option is C

decide and calculate new profit sharing ratio

At the time of admission of a partner in an existing partnership business, new profit sharing ratio is decided and calculated