Accountancy Part AAdmission of a Partner

The partners of a firm decide to change their existing profit sharing…

The partners of a firm decide to change their existing profit sharing ratio. This results in a:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Gain of additional share in future profits of the firm for some partners while a loss of a part thereof for other partners.

NCERT (2026-27 edition):
Change in Profit Sharing Ratio among the Existing Partners – “Sometimes, the partners of a firm decide to change their existing profit sharing ratio without any admission or retirement of a partner. This results in a gain of additional share in future profits of the firm for some partners while a loss of a part thereof for other partners.”