At the time of retirement of a partner, if there is undistributed profit in the Balance Sheet of the firm, it
At the time of retirement of a partner, if there is undistributed profit in the Balance Sheet of the firm, it
a) will not be distributed amongst the partners.
b) will be distributed in the capital ratio.
c) will be distributed in the old profit sharing ratio amongst all the partners
d) will be distributed amongst continuing partners.
Anurag Pathak Changed status to publish July 3, 2023
Ans – c)
Explanation:- undistributed are the parts of the past year’s profits. that is earned in the old profit-sharing ratio by all the partners. Thus it is distributed among all the partners in the old profit-sharing ratio.
Anurag Pathak Changed status to publish July 3, 2023
