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If accumulated profit ₹80000 is distributed in new ratio including new partner instead of old partners what is the main accounting defect?

Answer and explanation

Correct answer: Right of old profit is given to wrong persons

Accumulated profit belongs to the period before admission and only old partners have the right. Including new partner is wrong.

Related tags

Error AnalysisAccumulated ProfitNew RatioReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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