SOLUTION In the absence of Partnership Deed, the old partners will sacrifice their profit shares in their old profit-sharing ratio.
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…
SOLUTION The ratio in which all partners, including the incoming partner, will share the profits and losses in future is known as New Profit-sharing Ratio.
SOLUTION A new partner should contribute towards goodwill in order to compensate the existing partners for sacrificing their profit shares in his or her favour.
SOLUTION When a partner is admitted in the firm, he gets following two rights:(i) Right to share future profits of the firm, and(ii) Right to share in the assets of…
SOLUTION When a partner is admitted in the firm, he gets following two rights:(i) Right to share future profits of the firm, and(ii) Right to share in the assets of…
SOLUTION Partnership is dissolved not the partnership firm since the firm continues to carry on its business.
SOLUTION When a new partner is admitted into the firm, it is known as admission of a new partner. On admission of a new partner, old partnership comes to an…