How is Sacrificing Ratio calculated? Post category:Accountancy Reading time:1 mins read SOLUTION Sacrificing Ratio is sacrificed share in profit of two or more partners in terms of ratioSacrificed profit share of each partner is calculated as follows:Sacrificed Profit Share = Old Profit Share – New Profit Share Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is meant by New Profit-sharing Ratio in case of admission of a partner? Next PostIn the absence of a Partnership Deed, in which ratio do the old partners sacrifice their share of profit in case of admission of a new partner? (C.B.S.E. 2019) You Might Also Like Three Chartered Accountants Abhijit, Baljit and Charanjit form a partnership, profits being shared in the ratio of 3: 2: 1 subject to the following: (a) Charanjit’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by Baljit for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. October 18, 2022 What are Common Size Statements? October 1, 2022 Does the change in profit-sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (AI 2017 C) October 7, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Three Chartered Accountants Abhijit, Baljit and Charanjit form a partnership, profits being shared in the ratio of 3: 2: 1 subject to the following: (a) Charanjit’s share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by Baljit for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above. October 18, 2022
Does the change in profit-sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (AI 2017 C) October 7, 2022