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When there is change in profit sharing r...

When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued?

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Yes. Because the profit or loss on revaluation should by credited or debited to the accounts of the partners in their old profit sharing ratio.
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Change In The Profit Sharing Ratio Among The Existing Partners

When there is change in the profit sharing ratio amongst existing partners, does it require adjustment for goodwill?

State the ratio in which the partners share profits or lesses an revaluation of assets and liabilities, when there is a change in profit-sharing ratio among existing partners. Or State the ratio in which the partners share the gain or loss on revaluation of assets and liabilities.

How will you deal with goodwill when there is change in the profit sharing ratio among the existing partner? Illustrate with the help of imaginary figures.

Is it necessary to revalue the assets and liabilities if there is a change in profit sharing ratio of the existing partners ? Give reason.

Change In Existing Profit Sharing Ratio

Who should compensate whom in case of a change in profit sharing ratio of existing partners.

(i) If the partners of a firm decide to change their profit - sharing ratio , the gaining partner compensates the sacrificing partner by paying the proportionate amount of _________. (ii) Change in relationship among the partners is __________ of the partnership firm. (iii) Revaluation of assets on the reconstitution of partnership is necessary because their present value may be different from their ________ . (iv) A change in profit- sharing ration among the existing partners result in _________ of the partnership firm . (v) Revaluation Account is a ________ Account. (vi) Workmen Compensation Reserve is a reserve created out of profit to meet the_____________. (vii) The ration in which all the parners share future profits and losses is known as__________.

Fill in the blanks with appropriate words: (i) If the partners of a firm decided to change their profit -sharing ratio, the gaining partner compensates the sacrificing partner by paying the proportionate amount of _________ (ii) Change in relationship among the partners is ________ of the partnership firm. (iii) Revalution of assets on the reconstitution of partnership is necessary because their present value may be different from their_________ (iv) A change in profit -sharing ratio among the existing partners results in _________ of the partnership firm. (v) Revalution Account is a _________ Account. (vi) Workmen Compensation Reserve is a reserve created out of profit to meet the _________. (vii) The ratio in which all the partners share future profits and losses is known as_________

State whether the following statements are True or False : (i) Change in profit-sharing ratio of the existing partners results in the reconstitution of the partnership firm (ii) Change in profit -sharing ratio does not change the relationship among the existing partners. (iii) The partners whose shares have decreased as a result of change in profit -sharing ratio are known as sacrificing partners. (iv) The partners whose shares have increased as result of change in profit-sharing ratio are known as gaining partners. (v) Reserve Accumulated profit /Loss should always be distributed at the time of reconstitution of partnership even if the qestion is silent. (vi) There is no difference between 'furniture reduced by 20% and 'furniture reduce to 20%' (vii) After revalution, assets and liabilities may or may not be shown in the Balance Sheet at the revised value.

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