#CommerceAcademyRohtas #AdmissionOfNewPaetner Admission of New Partner, Lecture -02. Computation of New Profit-sharing Ration. Theory and Practical Problems Full Concept. Explanation in Hindi. Email: shariquerafi402@gmail.com Thank-you for Watching...(read more)
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Introduction Admission of new partners is an important step for any business. It not only brings in new capital and resources, but also allows for the expansion of the business. With the admission of a new partner, it is important to consider the calculation of the new profit-sharing ratio. This article will discuss the theory and practical problems associated with the calculation of the new profit-sharing ratio when admitting a new partner. Theory When admitting a new partner into a business, it is important to consider the impact on the existing partners. The existing partners will likely have to adjust their profit-sharing ratio to accommodate the new partner. This adjustment is often done by calculating the new partner’s capital contribution and then adjusting the existing partners’ profit-sharing ratio accordingly. The new partner’s capital contribution should be determined by the total capital of the business and the capital contributions of the existing partners. Practical Problems One of the main practical problems associated with the admission of a new partner is determining the exact amount of the new partner’s capital contribution. This can be difficult to do, as the exact amount of the new partner’s capital contribution may not be known until after the new partner has been admitted. Additionally, it can be difficult to determine the exact amount of capital each existing partner has contributed, as this may have changed over time. Another practical problem associated with the admission of a new partner is the potential conflict of interests between the existing partners and the new partner. This is because the existing partners may be reluctant to adjust their profit-sharing ratio in order to accommodate the new partner. This can lead to disagreements and conflict between the existing partners and the new partner. Conclusion Admitting a new partner into a business is an important decision that requires careful consideration. It is important to consider the calculation of the new partner’s profit-sharing ratio and the potential conflict of interests that may arise between the existing partners and the new partner. The theory and practical problems associated with the calculation of the new profit-sharing ratio should be taken into account when admitting a new partner. https://inflationprotection.org/02-admission-of-new-partner-calculation-of-new-profit-sharing-ratio-theory-practical-problems/?feed_id=67208&_unique_id=63dd21092f804 #Inflation #Retirement #GoldIRA #Wealth #Investing #DURecorder #ProfitSharingPlan #DURecorder
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