Commerce Exam > Commerce Videos > Accounting Test Time: Profit Sharing Ratio
Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce
FAQs on Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce
| 1. What is a profit sharing ratio in accounting? |  |
Ans. Profit sharing ratio refers to the proportion in which the profits of a partnership firm are distributed among its partners. It is agreed upon by the partners and is usually based on their respective investments, efforts, or any other mutually agreed criteria. The profit sharing ratio determines the percentage of profit that each partner is entitled to receive.
| 2. How is the profit sharing ratio calculated? | |
Ans. The profit sharing ratio is calculated by dividing the share of each partner's profit by the total profit of the partnership. For example, if Partner A's share of profit is $10,000 and the total profit is $50,000, then the profit sharing ratio of Partner A would be 10,000/50,000 or 1/5. This means that Partner A is entitled to receive one-fifth or 20% of the total profit.
| 3. Can the profit sharing ratio be changed in a partnership firm? | |
Ans. Yes, the profit sharing ratio can be changed in a partnership firm, but it requires the consent of all the partners. Any change in the profit sharing ratio should be mutually agreed upon and documented through an amendment in the partnership agreement. It is important to have clear communication and understanding among partners before making such changes to avoid any conflicts or misunderstandings.
| 4. What factors can influence the profit sharing ratio in a partnership? | |
Ans. The profit sharing ratio in a partnership can be influenced by various factors such as the initial investment made by each partner, the efforts put in by each partner, the experience and expertise of the partners, the roles and responsibilities assigned to each partner, and any special agreements or arrangements made among the partners. These factors can vary from partnership to partnership and can be adjusted based on the specific circumstances and goals of the firm.
| 5. How does the profit sharing ratio impact the distribution of profits? | |
Ans. The profit sharing ratio directly determines the distribution of profits among the partners. A higher profit sharing ratio means a larger share of profits for a partner, while a lower profit sharing ratio results in a smaller share. The profit sharing ratio ensures a fair and equitable distribution of profits based on the contributions and agreements of the partners. It is important for partners to regularly review and reassess the profit sharing ratio to maintain a balanced and mutually beneficial partnership.
Related Exams
About this Video
|
4.72/5 Rating |
|
Dec 23, 2024 Last updated |
Accounting Test Time: Profit Sharing Ratio for Commerce2024 is part of Commerce preparation. The notes and questions for Accounting Test Time: Profit Sharing Ratio
have been prepared according to the Commerce exam syllabus. Information about Accounting Test Time: Profit Sharing Ratio covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Accounting Test Time: Profit Sharing Ratio.
Introduction of Accounting Test Time: Profit Sharing Ratio in English is available as part of our Commerce preparation & Accounting Test Time: Profit Sharing Ratio in Hindi
for Commerce courses. Download more important topics, notes, lectures and mock test series for Commerce Exam by
signing up for free.
Description
Video Lecture & Questions for Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Accounting Test Time: Profit Sharing Ratio
Here you can find the Accounting Test Time: Profit Sharing Ratio defined & explained in the simplest way possible. Besides explaining types of Accounting Test Time: Profit Sharing Ratio
theory, EduRev gives you an ample number of questions to practice Accounting Test Time: 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
ppt
,Important questions
,Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce
,practice quizzes
,study material
,Summary
,Sample Paper
,Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce
,Viva Questions
,MCQs
,video lectures
,shortcuts and tricks
,Extra Questions
,Accounting Test Time: Profit Sharing Ratio Video Lecture - Commerce
,Semester Notes
,Exam
,Objective type Questions
,mock tests for examination
,Previous Year Questions with Solutions
,past year papers
,Free
;
Study Accounting Test Time: Profit Sharing Ratio on the App
Students of Commerce can study Accounting Test Time: Profit Sharing Ratio alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Accounting Test Time: 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 Accounting Test Time: 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