In which ratio accumulated profits will be distributed among existing partners when there is change in profit sharing ratio?
Dear Student
In case of Re-Constitution of Firm,
Accumulated profits or losses or whatever in the old balance sheet is shared between old partners in old PSR .
Therefore on change in PSR Accumulated profits like Reserves , Profit and Loss account shall also be distributed in Old PSR .
Regards
In case of Re-Constitution of Firm,
Accumulated profits or losses or whatever in the old balance sheet is shared between old partners in old PSR .
Therefore on change in PSR Accumulated profits like Reserves , Profit and Loss account shall also be distributed in Old PSR .
Regards