Question

The partner's capital account is to be credited when one partner is going to lose his share in future, and the remaining partner is going to gain.

• A. sacricing
• B. new
• C. gaining
• D. all

Answer 1

The correct option is A sacricing

The partners who are in profit due to the change in profit sharing ratio should compensate the sacrificing partner/partners. For this, the losing partner's capital account is to be credited when one partner is going to lose his share in future, and the remaining partner is going to gain.