Commerce Exam > Commerce Videos > Profit Sharing Ratio
Profit Sharing Ratio Video Lecture - Commerce
FAQs on Profit Sharing Ratio Video Lecture - Commerce
| 1. What is profit sharing ratio? |  |
Ans. Profit sharing ratio refers to the proportion in which the profits of a partnership firm are distributed among its partners. It determines how the profits will be divided among the partners based on their agreed-upon sharing ratio.
| 2. How is profit sharing ratio calculated? | |
Ans. Profit sharing ratio is usually determined by an agreement between the partners of a firm. It is calculated by dividing the share of each partner by the total share of all partners. For example, if there are three partners with profit sharing ratios of 2:3:5, the total ratio would be 2+3+5=10. Therefore, the profit sharing ratio for each partner would be 2/10, 3/10, and 5/10 respectively.
| 3. Can profit sharing ratio be changed? | |
Ans. Yes, profit sharing ratio can be changed with the mutual consent of all the partners. If the partners decide to change the ratio, they need to amend the partnership agreement and inform the concerned authorities. However, any change in the profit sharing ratio may have financial and tax implications, so it's important to carefully consider the consequences before making any changes.
| 4. How does profit sharing ratio affect partner's income? | |
Ans. The profit sharing ratio directly affects the income of each partner. A higher profit sharing ratio means a larger share of the profits for that partner, resulting in higher income. Conversely, a lower profit sharing ratio would result in a smaller share of the profits and lower income for that partner. Therefore, the profit sharing ratio plays a crucial role in determining the financial benefits received by each partner.
| 5. What factors are considered when deciding the profit sharing ratio? | |
Ans. Several factors are taken into consideration when deciding the profit sharing ratio. These may include the initial capital contribution made by each partner, the level of expertise and experience brought by each partner, the amount of time and effort invested by each partner, and the overall contribution towards the growth and success of the partnership. Additionally, any special arrangements or agreements made between the partners can also influence the profit sharing ratio.
Related Exams
About this Video
|
4.76/5 Rating |
|
Dec 23, 2024 Last updated |
Profit Sharing Ratio for Commerce2024 is part of Commerce preparation. The notes and questions for Profit Sharing Ratio
have been prepared according to the Commerce exam syllabus. Information about Profit Sharing Ratio covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Profit Sharing Ratio.
Description
Video Lecture & Questions for Profit Sharing Ratio Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Profit Sharing Ratio
Here you can find the Profit Sharing Ratio defined & explained in the simplest way possible. Besides explaining types of Profit Sharing Ratio
theory, EduRev gives you an ample number of questions to practice Profit Sharing Ratio tests, examples and also practice Commerce tests.
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Previous Year Questions with Solutions
,practice quizzes
,Important questions
,MCQs
,ppt
,Extra Questions
,Exam
,Summary
,mock tests for examination
,study material
,Sample Paper
,Profit Sharing Ratio Video Lecture - Commerce
,Profit Sharing Ratio Video Lecture - Commerce
,Profit Sharing Ratio Video Lecture - Commerce
,shortcuts and tricks
,Free
,video lectures
,Semester Notes
,past year papers
,Objective type Questions
,Viva Questions
;
Study Profit Sharing Ratio on the App
Students of Commerce can study Profit Sharing Ratio alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Profit Sharing Ratio,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Profit Sharing Ratio is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup