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Q.

When the profits are guaranteed by the partners on the old profit sharing ratio, which of the following is not true?

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a

Guaranteed amount is calculated according to his share

b

Amount guaranteed to a partner is transferred to profit and loss appropriation A/c

c

Then the remaining profits are distributed among old partners/remaining partners in remaining ratio

d

All of the above

answer is A.

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Detailed Solution

Guaranteed amount is to be given as per his ratio.

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When the profits are guaranteed by the partners on the old profit sharing ratio, which of the following is not true?