MyQuestionIcon

1537

You visited us 1537 times! Enjoying our articles? Unlock Full Access!

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

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

new

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

sacrifice

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

gaining

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

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.

Suggest Corrections

thumbs-up

2

Similar questions

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 ____________.

P

Q

are partners sharing profits in the ratio of

3 : 2

R

, a new partner who acquired

1 / 5^{t h}

of his share from

P

4 / 25^{t h}

Q

. Calculate New Profit Sharing Ratio and Sacrificing Ratio.

X

Y

are partners in a firm sharing profits and losses in the ratio of

3 : 2

Z

is admitted as partner with

1 / 4

share in profit.

Z

acquires his share from

X

Y

in the ratio of

2 : 1

.
Calculate the new profit sharing ratio.

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:

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Goodwill

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

New Profit Sharing Ratio

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon