what is the meant reconstitution of partnership
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Reconstitution of partnership means an old agreement between partners goes to end and its place new agreement will created between the partners..
In that case, many changes are created such as... change in profit sharing ratio, treatment of goodwill, treatment of provisions, revaluation of assets and liabilities.
Mostly in that case sacrifice ratio is calculate.. It is calculated by following formula...
sacrifice ratio= old ratio - new ratio...
HOPE ITS HELPFUL FOR YOU ❤^_^
In that case, many changes are created such as... change in profit sharing ratio, treatment of goodwill, treatment of provisions, revaluation of assets and liabilities.
Mostly in that case sacrifice ratio is calculate.. It is calculated by following formula...
sacrifice ratio= old ratio - new ratio...
HOPE ITS HELPFUL FOR YOU ❤^_^
Answered by
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reconstitution of partnership refers to change in agreement among the partners..
It can be done by admission and retirement
Hope it is helpful for you.
It can be done by admission and retirement
Hope it is helpful for you.
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