Reconstitution of a Partnership Firm

What leads to the reconstitution of a partnership firm?

What aspects are involved in ascertaining the amount due to a retiring or deceased partner?

What is the new profit sharing ratio?

What is the gaining ratio?

Distinguish between Gaining Ratio and Sacrificing Ratio in terms of: 1. Meaning 2. Effect on Partner’s Share of Profit 3. Mode of calculation 4. When to calculate

Madhu, Neha and Tina are partners sharing profits in the ratio of 5:3:2. Calculate new profit sharing ratio and gaining ratio if Madhu retires.

Alka, Harpreet and Shreya are partners sharing profits in the ratio of 3:2:1. Alka retires and her share is taken up by Harpreet and Shreya in the ratio of 3:2. Calculate the new profit sharing ratio.

Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3:8:1. Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakash. Calculate new profit sharing and the gaining ratio of the remaining partners.

Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3:2:1:4. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of 3:2. Calculate new profit sharing ratio and gaining ratio of the remaining partners.

Ranjana, Sadhna and Kamana are partners sharing profits in the ratio of 4:3:2. Ranjana retires; Sadhna and Kamana decided to share profits in future in the ratio of 5:3. Calculate the Gaining Ratio.