At the time of reconstitution of the firm (by way of change in profit sharing ratio/admission/retirement or death of a partner), gaining partner compensates the sacrificing partner by paying proportionate amount of
At the time of reconstitution of the firm (by way of change in profit sharing ratio/admission/retirement or death of a partner), gaining partner compensates the sacrificing partner by paying proportionate amount of
a) Goodwill
b) Capital
c) Both a) and b)
d) Either a) or b)
Anurag Pathak Changed status to publish May 5, 2023
Ans – a)
Explanation:-
at the time of reconstitution of the firm, the gaining partner compensates the amount of goodwill to the sacrificing partner. It is done so that gaining partner does not remain in advantage and sacrificing partner in disadvantage.
Anurag Pathak Changed status to publish May 4, 2023
