Q.9. Choose the correct order to match the following with their correct meaning: Colum A 1. Gaining ratio 2. Old Ratio 3. sacrificing ratio Colum B a) Ratio in which partners share profits and losses before reconstitution of form. b) Ratio in which partners acquire the share from others. c) Ratio in which partners surrender their shares in favor of other partner Slow d) Ratio in which partner share future profits and losses
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Gaining ratio is a financial tool that helps to measure the proportion in which a firm's remaining partners acquire the retiring partner or deceased partner's shares. It can also be described as the difference between the old profit sharing ratio and the new profit sharing ratio of partners.
2)It is the ratio in which the old partners of a partnership sacrifice their shares in favour of a new partner. It is calculated when a new partner enters into partnership.
a)The sacrifice ratio is an economic ratio that measures the effect of rising and falling inflation on a country's total production and output. ... The ratio measures the loss in output per each 1% change in inflation.
b)A, B, C and D were partners in a firm sharing profits in the ratio of 4:3:2:1. On 1-1-2015 they admitted E as a new partner for 1:10 share in the profits.
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Reconstitution Of A Partnership Firm - Admission Of A Partner.
Year Profit (Rs)
I 4,00,000
II 4,80,000
III 7,33,000
IV 33,000
c)New Profit Sharing Ratio The ratio in which all the partners (including incoming partner) share the future profits and losses is known as new profit sharing ratio. 4. Sacrificing Ratio It is the ratio in which the old partners have agreed to sacrifice their share of profits in favour of new or incoming partner
d)The ratio at which old partners surrender a part of their old shares in favour of incoming partner is
Match the column activity involves placing the correct option in front of the already given terms.
- The given terms belong to the concept of Accounting, which is further related to various types of ratios.
- An essential tool for analysing financial accounts is accounting ratios.
- To assess a firm's financial accounts, two or more financial data are compared.
- These show a relationship between a pair or more accounting figures derived from financial statements.
- The columns can be matched as -
1. Gaining ratio - b) Ratio in which partners acquire the share from others.
2. Old Ratio - d) Ratio in which partners share future profits and losses
3. Sacrificing ratio - c) Ratio in which partners surrender their shares in favour of other partners
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