in the chapter change in existing profit share atio the sign Plus stands for sacrificing partner and minus stands for gaining partner while we are calculating the change in PSR . Now in lesson admission of a partner , retirement , dissolution and death of partner what are the plus and minus signs stands for . Pls explain in detail
Dear Student,
In the chapter change in existing profit share ratio the sign Plus stands for sacrificing partner and minus stands for gaining partner while calculating the change in PSR. This is true.
In case of admission also the concept lies the plus sign stands for sacrificing and negative sign stands for gaining.
In case of retirement the concept reverse because now one of the partner is going to left the firm and that partner share will later be gained by the existing partner. So the plus signs means gaining and negative sign means sacrificing.
In case of dissolution there is no much concern on gaining and sacrificing because the firm is going to dissolve so the change in PSR will not matter as such.
Regards
In the chapter change in existing profit share ratio the sign Plus stands for sacrificing partner and minus stands for gaining partner while calculating the change in PSR. This is true.
In case of admission also the concept lies the plus sign stands for sacrificing and negative sign stands for gaining.
In case of retirement the concept reverse because now one of the partner is going to left the firm and that partner share will later be gained by the existing partner. So the plus signs means gaining and negative sign means sacrificing.
In case of dissolution there is no much concern on gaining and sacrificing because the firm is going to dissolve so the change in PSR will not matter as such.
Regards