Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
On dissolution of a partnership firm, profit or loss on realisation is distributed among the partners in which ratio?
Options:
Profit Sharing ratio
Capital Contribution ratio
As decided by the court
Equally
Correct Answer:
Profit Sharing ratio
Explanation:
On dissolution of a partnership firm, profit or loss on realisation is distributed among the partners in profit sharing ratio.