# Ratios under partnership For NCERT & CBSE Class 12 Accountancy

Hello students, below is a topic of NCERT Class 12 Accountancy based on the pattern of CBSE Class 12 Accountancy. Use the following information to frame your answers and score extraordinary marks in your examinations. These 12th Accountancy notes are short, crisp and easy to understand for all.

### Ratios under partnership chapter

The reconstitution of the firm leads to change in profit sharing ratio among remaining partners in the firm

Partner may be admitted , partner may retire/decease

Under different situations different ratios are required for further solution of any question

Different ratios are :

1. New profit-sharing ratios.
2. Old-profit sharing ratio (mostly given).
3. Gaining ratios of partners.
4. Sacrificing ratios by each partner.

We need to make it very clear which ratio is calculated when and how

A. New profit sharing ratio

New profit-sharing ratio of remaining partners is determined after admission of a partner or retirement/death of a partner.

New share = old share + acquired share

B. Sacrificing and gaining ratio

Students often get confused when to calculate sacrificing and when to calculate gaining ratio

We need not learn all the formulas. The pnly formula required is:

Old ratio – new ratio

If the formula results in negative it’s a GAIN by partner and if it’s a positive result its SACRIFICE by partner.

### POINTS FOR CLARIFICATION OF A CONCEPT

1. When partner admits as a partner he/she gains some share in profit so we calculate gaining ratio of incoming partner and old partners sacrifice their share of profit so we calculate sacrifice ratio for them.
2. But Sometimes the old partner also gains some share of profit on admission of new partner

Hence we calculate with the above formula and conclude weather partner is sacrificing or gaining and calculate ratios accordingly.

Conclusion

GAIN BY NEW PARTNER AND SACRIFICE BY OLD PARTNER (exception excluded)

1. When partner retires/decease his share of profit is acquired by old partners hence no sacrifice is made in this situation. Under this we calculate only gaining and new share of profit.

Conclusion

GAIN BY OLD PARTNERS AND SACRIFICE BY NONE

Have a look on our another Article on Commerce Liquidity Ratio

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Tags : CBSE Class 12 Accountancy Ratios under partnership / Class 12 Accountancy Ratios under partnership / Accountancy Ratios under partnership / Ratios under partnership

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November 13, 2019