Question on: JAMB Accounting - 2017
Changes can occur in partnership when:
i. partnership is dissolved
ii. There is amalgamation of partnership
iii.There is a change in the profit or loss sharing ratio
Iv. Intangible asset increase
A
I,II and IV
B
I & III
C
I,II and III
D
I, III and IV
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Correct Option: C
Changes in a partnership can occur in the following situations:
- i. Partnership is dissolved: When a partnership is dissolved, it signifies a major change, often requiring a new agreement or the winding up of the business.
- ii. There is amalgamation of partnership: Amalgamation involves merging two or more partnerships, leading to significant changes in the structure and operations.
- iii. There is a change in the profit or loss sharing ratio: Altering the ratio in which profits and losses are divided among partners directly impacts their financial interests and the distribution of earnings.
- iv. Intangible asset increase: An increase in an intangible asset doesn't necessarily lead to changes in the partnership's structure or operations. It may affect the valuation of the company, but not the partnership'
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