Dr Rajat Khandelwal presents NCERT Series on Class 12 Accountancy: Alteration in Profit Distribution Ratio

In this session, Educator Dr. Rajat Khandelwal will be discussing Change in Profit Sharing Ratio - Fully Loaded Questions for Class 12 Accountancy. Call Dr. Rajat Khandelwal's team on 8585858585 and take your K12 Preparations to the next level. ➤ Use Code ''RAJATSIRLIVE'', Unlock FREE Special Classes on our platform, & also Get 10% off on your Subscription today. ---------------------------------------------------- ➤ Subscribe Now to get Unacademy Plus Subscription at Best Prices: CBSE Class 11: CBSE Class 12: ---------------------------------------------------- ➤ About the Educator: Dr.Rajat Khandelwal (Teaching Experience 13 consecutive years) Holding :- M.COM & Ph.D.degree. Use invite code RKSIR. ➤ Follow Dr. Rajat Khandelwal on Unacademy: Playlist Link: ---------------------------------------------------- You can enroll to Unacademy Subscription and get the following benefits: 1. Learn from your favourite teacher 2. Dedicated DOUBT sessions 3. One Subscription, Unlimited Access to Live Online Classes and Videos 4. Real-time interaction with best-in-class teachers 5. You can ask doubts in live online classes 6. Limited students in each Class 7. Download the videos & watch them offline ---------------------------------------------------- Download the Unacademy Learning App here: ➤ Android: ➤ iOS: ---------------------------------------------------- If you don’t wish to miss any updates and or latest videos about K12 Exams Preparation, subscribe to the channel now. Students who have already subscribed, stay tuned as we will get more strategy and preparations videos and FREE LIVE CLASSES just for you. Feel free to spread the word – share the videos with your friends and classmates. #Profit_Sharing_Ratio #class_12_accountancy #Rajat_Khandelwal...(read more)

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Profit sharing ratio is an integral part of partnership accounting. It is the proportion in which profits are shared between partners of a firm. It is agreed upon by the partners at the time of forming the partnership. However, as businesses go through different phases, there may come a time when partners may decide to change the profit sharing ratio. In this article, we will discuss the reasons for this change and its implications. Reasons for a change in profit sharing ratio: 1. Change in the contribution of partners: Partners may have varying contributions towards the business. One partner may bring in more capital, while another may bring in more expertise. In such cases, the profit sharing ratio may not be equitable and may need to be restructured. 2. Change in responsibilities: Over time, partners may take up different roles in the business. One partner may be responsible for marketing, while another may be responsible for operations. In such cases, partners may want to change the profit sharing ratio to reflect their contributions. 3. Change in business conditions: Business conditions are dynamic and unpredictable. A change in market conditions or an unforeseen event may affect the profitability of the business. In such situations, partners may decide to relook at their profit sharing ratio. Implications of a change in profit sharing ratio: 1. Income tax implications: A change in profit sharing ratio may have income tax implications. If the minimum period for which the partnership was formed has not yet expired, the partnership may be deemed to be dissolved, and there may be a tax liability. 2. Dissolution of partnership: A change in profit sharing ratio may lead to the dissolution of the partnership if one partner does not agree with the proposed changes. 3. Valuation of goodwill: A change in profit sharing ratio may impact the valuation of goodwill. Goodwill is the value of reputation and brand recognition that a business has built up over time. If the profit sharing ratio is changed, the goodwill may need to be revalued. In conclusion, a change in the profit sharing ratio is a decision that should be taken after considering the long-term implications for the business and the partners. It should be made in a structured and transparent manner and should not be taken lightly. Partners should consult with their accountant and legal advisor before making any changes to the profit sharing ratio. https://inflationprotection.org/dr-rajat-khandelwal-presents-ncert-series-on-class-12-accountancy-alteration-in-profit-distribution-ratio/?feed_id=102271&_unique_id=64744f8d5ab94 #Inflation #Retirement #GoldIRA #Wealth #Investing #cbseclass12 #changeinprofitsharingratio #changeinprofitsharingratioamongtheexistingpartnersclass12 #changeinprofitsharingratiobyrajatkhandelwal #changeinprofitsharingratioclass12 #Class12 #class12accountancy #class12accountancybyrajatkhandelwal #class12accountancyncertseries #class12accounts #dr.rajatkhandelwal #ncertseries #profitsharingratioclass12 #someimportantadjustments #unacademycbsecommerce11and12 #ProfitSharingPlan #cbseclass12 #changeinprofitsharingratio #changeinprofitsharingratioamongtheexistingpartnersclass12 #changeinprofitsharingratiobyrajatkhandelwal #changeinprofitsharingratioclass12 #Class12 #class12accountancy #class12accountancybyrajatkhandelwal #class12accountancyncertseries #class12accounts #dr.rajatkhandelwal #ncertseries #profitsharingratioclass12 #someimportantadjustments #unacademycbsecommerce11and12