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Accountancy

New Profit Sharing Ratio

In this Class 12 Accountancy topic from Reconstitution – Admission of a Partner, students learn how to determine the new profit-sharing ratio among partners after a new partner joins the firm. The topic explains how the incoming partner’s agreed share affects the existing partners and how the revised ratio is calculated from the old ratio, the new partner’s share, and any agreed sacrifice. Students also practise applying these concepts to partnership adjustment questions accurately.

Medium · Level 7 · 3 questions

Practice questions

01A and B share profits in (7:5). C gets (1/6) share by equal sacrifice from both. What will be B's sacrifice?

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02The old ratio is 4:2:1 and the new ratio is 3:2:1:1. From which old partner did the new partner's share come?

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03If the new partner's share is 1/3 and he receives it from old partners in the ratio 3:2:1, what is the first partner's sacrifice?

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