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Partnership accounts

Sir in this question Higher relative capital method why the 4,000 balance is not apportioned on profit sharing ratio and overall preference given to partner A ignoring partner B

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M.V. Naresh

M.V. Naresh

CA Inter

2K+

28-Jan-21 11:06

17

Answers (1)

Under Higher Relative Capital Method , the partner who had contributed highest capital in terms of their profit- sharing ratio are paid off prior to the other partners. Thus B is paid the 4,000 without sharing with A


sudha reddy

sudha reddy

Moderator

28-Jan-21 14:39