What is meant by Sacrificing Partners? Post category:Accountancy Reading time:1 mins read SOLUTION The partners whose shares have decreased as a result of change in profit-sharing ratio are called ‘Sacrificing Partners’. 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 PostWhat is the formula for calculating sacrificing ratio? Next PostGive two circumstances in which sacrificing ratio may be applied. You Might Also Like What is the meaning of Common Size Balance Sheet? October 1, 2022 Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2018 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2019 amounted to Rs. 3,500 and Rs. 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve. You are asked to show Partners’ Current Account and Capital Accounts recording the above transactions. July 21, 2022 Why are “Reserves & Surplus” distributed at the time of reconstitution of the firm? September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2018 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2019 amounted to Rs. 3,500 and Rs. 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve. You are asked to show Partners’ Current Account and Capital Accounts recording the above transactions. July 21, 2022
Why are “Reserves & Surplus” distributed at the time of reconstitution of the firm? September 26, 2022