What is meant by New Profit-sharing Ratio in case of admission of a partner? Post category:Accountancy Reading time:1 mins read 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. Please Share This Share this content Opens in a new window X Opens in a new window Facebook 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 PostAt the time of admission of a new partner in the firm, the new partner compensates the old partners for their loss of share in the Super Profits of the firm for which he brings in an additional amount which is known as__. (CBSE 2020) Next PostHow is Sacrificing Ratio calculated? You Might Also Like Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money. All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book. July 15, 2022 At the time of admission of a partner, who decides what will be the share of profit of the new partner out of the firm’s profit? (Delhi 2013 C. CBSF. 2019 c) October 8, 2022 Does the change in profit sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (C.B.S. E. 2017, Comptt) September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money. All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book. July 15, 2022
At the time of admission of a partner, who decides what will be the share of profit of the new partner out of the firm’s profit? (Delhi 2013 C. CBSF. 2019 c) October 8, 2022
Does the change in profit sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (C.B.S. E. 2017, Comptt) September 27, 2022