Example 1: Change in partners' fractional sharing ratios

Example 2: Revaluation of an asset followed by a change in fractional sharing ratios

Example 3: Revaluation of an asset followed by a change in fractional sharing ratios for which consideration is given

Example 1: Change in partners' fractional sharing ratios

Facts

A and B carry on a business in partnership and hold equal interests in partnership assets.

The partnership's assets include a freehold property that is included in the balance sheet at its acquisition cost of £500,000.

The CG base costs for A and B are:

A £500,000 x 50% = £250,000

B £500,000 x 50% = £250,000

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