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Question
Which of the following does not result in the change in the profit sharing ratio?
Options
When one or more partners acquire an interest in the business from another partner or partners
When a partner is admitted in the firm.
When a partner goes on a vacation.
When a partner dies.
MCQ
Solution
When a partner goes on a vacation.
Explanation:
Because a partner does not retire from the firm when he takes a vacation, the profit-sharing ratio does not alter.
shaalaa.com
Change in Profit Sharing Ratio Among the Existing Partners
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