Assets are revalued and liabilities are reassessed at the time of change in profit sharing ratio so that
Assets are revalued and liabilities are reassessed at the time of change in profit sharing ratio so that
a) assets and liabilities are shown at their present values
b) gaining partner is not put to an advantage and sacrificing partner is not put to disadvantage and vice-versa
c) Both a) and b)
d) assets and liabilities are shown at their market values.
Anurag Pathak Changed status to publish May 5, 2023
Ans – b)
Explanation:-
The revaluation of assets and liabilities is done to protect the interest of partners. gaining partners should not be in advantage and sacrificing partners also should not be in a disadvantage.
Anurag Pathak Changed status to publish May 4, 2023
