Class 12 Exam > Class 12 Questions > Gain / loss on revaluation at the time of cha...
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Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by (ii)________ .
- a)(i) Remaining Partners, (ii) All Partners
- b)(i) All Partners, (ii) Old partners
- c)(i) New Partner, (ii) All partner
- d)(i) Sacrificing Partner, (ii) Incoming partner
Correct answer is option 'B'. Can you explain this answer?
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Gain / loss on revaluation at the time of change in profit sharing rat...
Explanation:
When there is a change in the profit-sharing ratio of the existing partners, there is a gain or loss on revaluation of assets and liabilities. This gain or loss needs to be shared among the partners. The distribution of this gain or loss depends on whether it is a change in profit-sharing ratio among existing partners or admission of a new partner.
(i) Change in profit-sharing ratio among existing partners:
- In this case, the gain or loss on revaluation is shared by all the partners, including the old partners and the new partner.
- The reason for this is that the existing partners are changing their profit-sharing ratios, which affects their ownership in the partnership.
- Therefore, all partners, both old and new, should bear the consequences of the gain or loss on revaluation.
(ii) Admission of a new partner:
- In this case, the gain or loss on revaluation is shared only by the old partners.
- The reason for this is that the new partner is not yet a part of the partnership and does not bear any responsibility for the existing assets and liabilities.
- The gain or loss on revaluation is considered to have occurred before the admission of the new partner, so it is shared only by the old partners.
Conclusion:
- When there is a change in profit-sharing ratio among existing partners, the gain or loss on revaluation is shared by all partners, including the old and new partners.
- However, when a new partner is admitted, the gain or loss on revaluation is shared only by the old partners.
When there is a change in the profit-sharing ratio of the existing partners, there is a gain or loss on revaluation of assets and liabilities. This gain or loss needs to be shared among the partners. The distribution of this gain or loss depends on whether it is a change in profit-sharing ratio among existing partners or admission of a new partner.
(i) Change in profit-sharing ratio among existing partners:
- In this case, the gain or loss on revaluation is shared by all the partners, including the old partners and the new partner.
- The reason for this is that the existing partners are changing their profit-sharing ratios, which affects their ownership in the partnership.
- Therefore, all partners, both old and new, should bear the consequences of the gain or loss on revaluation.
(ii) Admission of a new partner:
- In this case, the gain or loss on revaluation is shared only by the old partners.
- The reason for this is that the new partner is not yet a part of the partnership and does not bear any responsibility for the existing assets and liabilities.
- The gain or loss on revaluation is considered to have occurred before the admission of the new partner, so it is shared only by the old partners.
Conclusion:
- When there is a change in profit-sharing ratio among existing partners, the gain or loss on revaluation is shared by all partners, including the old and new partners.
- However, when a new partner is admitted, the gain or loss on revaluation is shared only by the old partners.
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Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer?
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Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer?.
Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Gain / loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by(i)_____ whereas in case of admission of a partner it is shared by(ii)________ .a)(i) Remaining Partners, (ii) All Partnersb)(i) All Partners, (ii) Old partnersc)(i) New Partner, (ii) All partnerd)(i) Sacrificing Partner, (ii) Incoming partnerCorrect answer is option 'B'. Can you explain this answer?.
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