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Yogita Ingle 6 years 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
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Yogita Ingle 6 years ago
Employee Stock Option Plan or ESOP is wherein company issues shares to its employees at a price that is lower than the market price. Employee gets an option to execute the offer with an objective of motivating employees to perform better and promote a sense of ownership.
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Yogita Ingle 6 years ago
Financial statement is written reports of financial affairs of a company which reports and communicate the result of its business operations for a particular period of time and its financial position at the end of that period.
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