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:
Capital ratio
Profit sharing ratio
Equally
None of the above
Correct Answer:
Profit sharing ratio
Explanation:
Profit or loss on Realisation should be divided among partners in the Profit Sharing Ratio.