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New Profit Sharing Ratio

When a new pa...

Question

When a new partner acquires his share of profit from an old partner, the profit sharing ratio becomes necessary to calculate.

A

old

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B

new

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C

sacrifice

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D

gaining

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Solution

The correct option is B new
After the admission of a new partner, the ratio of the old partner is changed. Hence, the new profit sharing ratio becomes necessary to calculate.

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Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted ?

Q. New incoming partner pays his share of goodwill in cash and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.

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are partners sharing profits in the ratio of

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, a new partner who acquired

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. Calculate New Profit Sharing Ratio and Sacrificing Ratio.

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D and H are partners in a firm sharing profits in the ratio of 3 : 2. They admit A as a partner for 1/4th share in the profits. A acquires his share from D and H in the ratio of 1 : 2. The new profit-sharing ratio will be:

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