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a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b
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a b c are partners sharing profit in the ratio 5 is to 3 is to to calc...
Reconstitution of Partnership Firm: Admission of a Partner
Introduction:
Reconstitution of a partnership firm refers to any change in the partnership agreement, which may include the admission of a new partner, retirement of an existing partner, or dissolution of the partnership. Admission of a partner occurs when a new partner is introduced into the existing partnership firm.
Calculation of New Profit Sharing Ratio:
In the given case, A, B, and C are partners sharing the profit in the ratio of 5:3:2. If a new partner D is admitted, then the new profit sharing ratio will be calculated as follows:
Let the new profit sharing ratio be 5x:3x:2x:1v, where x is a common multiplier, and 1v is the share of the new partner.
Therefore, the total profit sharing ratio will be (5x+3x+2x+1v) = 11x+1v.
If the new partner is to be given 1v share from A, then A's new share will be (5x-1v).
Similarly, if the new partner is to be given 150 shares equally from A and B, then the new share of A and B will be (5x-75) and (3x-75), respectively.
Sacrificing Ratio:
The sacrificing ratio is the ratio in which the old partners agree to sacrifice their share of profits in favor of the new partner. In the given case, the sacrificing ratio will be calculated as follows:
If the new partner is to be given 1v share from A, then the sacrificing ratio of A will be (1v/5x-1v).
Similarly, if the new partner is to be given 150 shares equally from A and B, then the sacrificing ratio of A and B will be (75/5x-75) and (75/3x-75), respectively.
Conclusion:
Reconstitution of a partnership firm is a complex process that requires careful consideration of various factors. The admission of a new partner involves the calculation of the new profit sharing ratio and the sacrificing ratio, which are essential for the smooth functioning of the partnership. The above explanation provides a basic understanding of the process involved in the admission of a new partner and the calculation of the new profit sharing and sacrificing ratios.
Introduction:
Reconstitution of a partnership firm refers to any change in the partnership agreement, which may include the admission of a new partner, retirement of an existing partner, or dissolution of the partnership. Admission of a partner occurs when a new partner is introduced into the existing partnership firm.
Calculation of New Profit Sharing Ratio:
In the given case, A, B, and C are partners sharing the profit in the ratio of 5:3:2. If a new partner D is admitted, then the new profit sharing ratio will be calculated as follows:
Let the new profit sharing ratio be 5x:3x:2x:1v, where x is a common multiplier, and 1v is the share of the new partner.
Therefore, the total profit sharing ratio will be (5x+3x+2x+1v) = 11x+1v.
If the new partner is to be given 1v share from A, then A's new share will be (5x-1v).
Similarly, if the new partner is to be given 150 shares equally from A and B, then the new share of A and B will be (5x-75) and (3x-75), respectively.
Sacrificing Ratio:
The sacrificing ratio is the ratio in which the old partners agree to sacrifice their share of profits in favor of the new partner. In the given case, the sacrificing ratio will be calculated as follows:
If the new partner is to be given 1v share from A, then the sacrificing ratio of A will be (1v/5x-1v).
Similarly, if the new partner is to be given 150 shares equally from A and B, then the sacrificing ratio of A and B will be (75/5x-75) and (75/3x-75), respectively.
Conclusion:
Reconstitution of a partnership firm is a complex process that requires careful consideration of various factors. The admission of a new partner involves the calculation of the new profit sharing ratio and the sacrificing ratio, which are essential for the smooth functioning of the partnership. The above explanation provides a basic understanding of the process involved in the admission of a new partner and the calculation of the new profit sharing and sacrificing ratios.
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a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner?
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a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner?.
a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a b c are partners sharing profit in the ratio 5 is to 3 is to to calculate the new profit sharing ratio and the sacrificing ratio in the each of the following cases case one if she requires one v share from a case to itzy acquires 150 share equally from a and b Related: Chapter Notes - Reconstitution of a Partnership Firm: Admission of a Partner?.
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