JAMB Accounts Principles of Accounts 2023 Paper

Concept:Profit sharing ratio changes when partners agree on a new basis for sharing profits due to changes in their contributions or circumstances.Explanation:A partner's skill can justify a higher share, so I is valid.Health status may affect a partner's workload, so II is valid.Old age can reduce participation, so III is valid.An increase in intangible assets is an accounting adjustment, not a reason for changing the ratio, so IV is not valid.Thus, the correct combination is I, II and III.Answer:C. I, II and III