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Ch-5 admission of partner of and …

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Ch-5 admission of partner of and from

Posted by Ankit Thakur 3 years, 11 months ago

CBSE > Class 12 > Accountancy

2 answers

Gaurav Seth 3 years, 11 months ago

Sacrificing ratio is the ratio where the old partners give their consent to forego their share of gains into the new partner. The forego (sacrifice) by a partner is equivalent to:

Old Share of Profit – New Share of Profit

Sacrificing ratio is computed during the time of addition or admission of a new associate partner. It is the portion in which old partners forego their share to the new associate.

A new partner is needed to :

Recompense the old partners for their forfeiture of share in the gains of the enterprise for which he gets in a supplement amount known as goodwill or premium

This ratio is normally given as consented among the partners which can be the old ratio, equal amount of sacrifice or a defined ratio. The difficulty appears where the ratio in which the novice partner obtains his share from the old partners is not defined. Rather, the NPSR (new profit sharing ratio) is provided. In such a scenario, the sacrificing ratio is to be functioned out by subtracting each associate partner’s new share from his old share.

Ankit Thakur 3 years, 11 months ago

What do you mean by sacrificed ratio

ANSWER

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Palak Sharma 4 months ago

CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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