Questions and Answers
Why are assets revalued and liabilities reassessed in case of a change in profit-sharing ratio or reconstitution of the firm?
To determine the new capital of the partners
Which account is debited to write off goodwill in case of a change in profit-sharing ratio or reconstitution of the firm?
Partner's capital account in the old profit-sharing ratio
What happens to accumulated profit and loss when there is a change in the profit-sharing ratio or reconstitution of the firm?
It is distributed among the partners in the old profit-sharing ratio
How is the difference between the new profit-sharing ratio and the old profit-sharing ratio calculated?
Signup and view all the answers
What happens to goodwill in case of a change in profit-sharing ratio or reconstitution of the firm?
Signup and view all the answers
