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Which statement is correct about the new profit sharing ratio?

Answer and explanation

Correct answer: It is the profit ratio of all partners after admission

The new profit sharing ratio applies to all old and new partners after admission. Do not treat it as capital ratio.

Related tags

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

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