New Profit Sharing and Sacrificing Ratio (Part A) Video Lecture | Accounting for A Level

so now first of all we'll discuss about
the ratio in different situation you
know when there is admission of a new
partner
first of all we have to calculate
gaining ratio and cyclic icing ratio or
gaining shares or sacrificing share
suppose there are two partners a and B
and their ratio was 3 is to 2 they
agreed to admit see that a new partner
for 1/4 share now the question is what
will be the new ratio you know you have
to calculate three ratios old ratio new
ratio and sacrificing ratio there is no
need to calculate gaining ratio because
only the new partner is going to gain
ratio is calculated when there should be
at least two subjects or two persons or
two figures so in this situation of
admission the gaining partner is only
one yes we will have to calculate
sacrificing ratio because two partners
are going to sacrifice a and B so all -
Ava's three is - - it means their old
shares were 3 + 2 5 m is 3 by 5 and 2 by
5 and you are asked to calculate
sacrificing ratio if the question is
silent the sacrificing ratio will be the
same as old ratio you know old ratio was
3 to 2 so the sacrificing ratio will
remain 3 is to 2 now the question is we
have to calculate new ratio for new
ratio we need new shares you know a and
B both together they have to sacrifice
1/4 because C is coming for 1/4 and this
shear will be sacrificed by a and B now
question is in what ratio if the
question is silent we will assume that a
and B are going to sacrifice in the same
ratio that is 3 is to 2 means a will
sacrifice 3 by 5 and B will sacrifice to
buy pipe of what that is 1/4 it means a
will sacrifice 3/5 of 1/4 and B will
sacrifice 2/5 of 1/4 so they're
sacrificing shears will be 3 by 20 and 2
by 20 it means previously a was getting
3 by 5 and after the admission his new
share will be 3 by 5 minus 3 by 20
because he has sacrificed 3 by 20 in
favor of C so the new share will be 45
upon 100 in the same way previously B
was getting 2 by 5 and out of that he
has given to by 20 and the new share
will be 30 by 100 and the C's new share
is 1/4 or in other words 25 upon 100 so
the new ratio will be 45 is to 30 is 225
and the lowest form will be 9 is 2 6 is
to 5 so in this question the old - of us
3 is to 2 and the sacrificing ratio was
3 is to 2 and the new ratio will be 9 is
2 6 is to 5 now
I will give you one shortcut how to
calculate sacrificing ratio new ratio
etcetera very very quickly let us take
that example suppose there were two
partners a and B and their profit
sharing ratio was 3 is 2 2 C comes as a
new partner for one for share and you
are asked to calculate new
profit-sharing ratio so what we do
calculate the difference between 1 and 4
I mean to say 1/4 share of C the upper
value is 1 and the lower value is 4 and
the difference is 3 multiply 3 by 3 for
a and 3 by 2 for B and in the next
column and the total of 3 + 2 is 5 5
into 1 this is the upper value of new
partner share so the new shares will be
9 is 2 6 is 2 5 got confused okay I give
you one more example suppose a and B but
two partners sharing profits and losses
in the ratio of 4 is 2 3 C comes as a
new partner for 1/7 shear but will be
the new ratio the new ratio will be
first of all calculate the difference
between 1 and 7 because once a month
either share of C and the difference
between 1 & 7 is T that is 6 multiplied
6 by 4 then multiply 6 by 3 and the
total of 4 + 3 that is 7 multiplied 7
into 1 1 is the upper value of the shear
of new partner so in this way the value
will be 24
is to 18 is to 7 and the new ratio will
be 24 18 and 7 let us take one more
example suppose there are three partners
a b c and their profit chain ratio was 5
is to 3 is to 2 and d comes as a new
partner for 1/10 share so what is the
difference between 1 and 10 that is 9 so
we'll start multiplying 9 into 5 9 into
3 and 9 into 2 and and the total of 5 3
2 is equal to 10 so multiplied 10 into 1
1 is the upper value of the share of D
so in this way the new values will be 45
27 18 and 10 this is the new ratio so in
this way if the old ratio of the old
partners is given and the sheer of the
new partner is given you can calculate
new ratio very very quickly without any
calculation and without taking any pen
or paper but this is conditional no
further information is given regarding
this ratio then this formula can be
applied
you