Question

Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ___(i)______ whereas in case of admission of a partner it is shared by____(ii)_____.

(A) (i) Remaining Partners, (ii) All Partners.

(B) (i) All Partners, (ii) Old partners.

(C) (i) New Partner, (ii) All partner.

(D) (i) Sacrificing Partner, (ii) Incoming partner.

Answer 1

Correct answer is: (B) (i) All Partners, (ii) Old partners.

Explaination::
Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by all Partners whereas in case of admission of a partner it is shared by old partners.