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From when does the new profit-sharing ratio apply after a partner’s retirement?

Answer and explanation

Correct answer: For the period from the retirement date onward

The new ratio applies to profits for the period from the retirement date onward, when the continuing partners share profits under the reconstituted arrangement. The old ratio applies to the period before retirement.

Related tags

New RatioEffective DateRetirementNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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