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In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner?
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In the absence of partnership deed ,in which ratio do the old partners...
**In the absence of partnership deed, the old partners may choose to sacrifice their share of profit in the following ratios in case of the admission of a new partner:**
1. **Equal Sacrifice:** The old partners may decide to sacrifice their share of profit equally in order to maintain equality among the partners. For example, if there are three old partners with equal shares, and a new partner is admitted, each old partner may choose to sacrifice one-third of their share.
2. **Proportional Sacrifice:** The old partners may decide to sacrifice their share of profit in proportion to their existing shares. This ensures that each partner sacrifices a portion of their share relative to their existing ownership in the partnership. For instance, if one old partner holds a 40% share and another holds a 60% share, they may sacrifice profits in the same proportion when admitting a new partner.
3. **Capital Ratio:** The old partners may decide to sacrifice their share of profit based on their capital contributions. This means that the partners sacrifice profits in proportion to the amount of capital they have invested in the business. For example, if one partner has contributed twice the capital as another partner, they may agree to sacrifice twice the amount of profit.
4. **Working Ratio:** The old partners may decide to sacrifice their share of profit based on their involvement in the day-to-day operations of the business. This ratio takes into account the effort and time invested by each partner in the partnership. For instance, if one partner is actively involved in managing the business while another partner is less involved, the former may agree to sacrifice a larger share of profit.
5. **Negotiated Ratio:** The old partners may negotiate and agree upon a specific ratio of sacrifice based on various factors such as experience, expertise, potential business growth, or any other relevant considerations. This allows flexibility and customization in determining the sacrifice of profit shares.
It is important to note that in the absence of a partnership deed, the decision on the ratio of sacrifice should be made through mutual consent and agreement among the old partners. Open communication and transparency are crucial in order to avoid any disputes or conflicts regarding the sharing of profits.
1. **Equal Sacrifice:** The old partners may decide to sacrifice their share of profit equally in order to maintain equality among the partners. For example, if there are three old partners with equal shares, and a new partner is admitted, each old partner may choose to sacrifice one-third of their share.
2. **Proportional Sacrifice:** The old partners may decide to sacrifice their share of profit in proportion to their existing shares. This ensures that each partner sacrifices a portion of their share relative to their existing ownership in the partnership. For instance, if one old partner holds a 40% share and another holds a 60% share, they may sacrifice profits in the same proportion when admitting a new partner.
3. **Capital Ratio:** The old partners may decide to sacrifice their share of profit based on their capital contributions. This means that the partners sacrifice profits in proportion to the amount of capital they have invested in the business. For example, if one partner has contributed twice the capital as another partner, they may agree to sacrifice twice the amount of profit.
4. **Working Ratio:** The old partners may decide to sacrifice their share of profit based on their involvement in the day-to-day operations of the business. This ratio takes into account the effort and time invested by each partner in the partnership. For instance, if one partner is actively involved in managing the business while another partner is less involved, the former may agree to sacrifice a larger share of profit.
5. **Negotiated Ratio:** The old partners may negotiate and agree upon a specific ratio of sacrifice based on various factors such as experience, expertise, potential business growth, or any other relevant considerations. This allows flexibility and customization in determining the sacrifice of profit shares.
It is important to note that in the absence of a partnership deed, the decision on the ratio of sacrifice should be made through mutual consent and agreement among the old partners. Open communication and transparency are crucial in order to avoid any disputes or conflicts regarding the sharing of profits.
Community Answer
In the absence of partnership deed ,in which ratio do the old partners...
(old partners + new partner )'s profit and loss sharing ratio is equal
according to act absence of partnership deed profit and loss divided equally
according to act absence of partnership deed profit and loss divided equally
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In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner?
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In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner?.
In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of partnership deed ,in which ratio do the old partners sacrifice their share of profit in case of admission of new partner?.
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