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A new partnership deed changes the profit ratio but the previous year's profit had to be shared in the old ratio. Which principle applies while making adjustment?

Answer and explanation

Correct answer: Old profit will be rectified using old ratio

The ratio applicable to the period of profit must be used. Dates and periods are decisive in expert questions.

Related tags

PartnershipAdjustmentsRatio PeriodPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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