What is Reconstitution of a Partnership Firm?
Partnership is an agreement between two or more people for sharing the gains of a trade carried by all or any one of them who is acting for all. Any change in the current agreement is called as reconstitution of the partnership firm.
Let us now understand each concept of Reconstitution of a Partnership Firm –Admission of a Partner in detail.
- Modes of Reconstitution of a Partnership Firm
- Admission of a New Partner
- New Profit Sharing Ratio
- Sacrificing Ratio
- Adjustment for Accumulated Profits and Losses
- Revaluation of Assets and Reassessment of Liabilities
- Adjustment of Capitals
- Change in Profit Sharing Ratio among the Existing Partners
The above mentioned is the concept that is explained in detail about Reconstitution of a Partnership Firm – Admission of a Partner for the Class 12 students. To know more, stay tuned to BYJU’S.
|Multiple Choice Questions|
|Q.1-New profit sharing ratio is calculated ____________:|
|a. Old ratio-gaining ratio
b. Gaining ratio-old ratio
c. Old ratio-sacrificing ratio
d. Sacrificing ratio-old ratio
|Q.2-New partner may acquire his share from old partners through any of the ways:|
|a. In old profit-sharing ratio
b. In a particular ratio
c. In a surrendered ratio
d. All of the above
|Q.3- It is necessary to determine ______ during the Admission of a new partner.|
|a. Gaining ratio
b. Sacrificing ratio
c. New profit sharing ratio
d. Both (b) & (c)
|1-c, 2-d, 3-d.|