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Which of the following statements is correct?

Answer and explanation

Correct answer: New ratio applies to all partners

New profit sharing ratio is used to divide profit among all partners after admission. Do not limit it only to the new partner.

Related tags

AdmissionNew-Profit-Sharing-RatioClass-12New Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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