Class 12 Accountancy NCERT Solutions Chapter 3 - Reconstitution of a Partnership Firm: Admission of a Partner





















FAQs on NCERT Solutions for Class 12 Accountancy Chapter 3 - Reconstitution Of A Partnership Firm: Admission Of A Partner
1. What is the Definition of Sacrificing Ratio? What is the Formula for Calculating the Sacrificing Ratio?
Sacrificing ratio is the ratio of shared profits that are sacrificed by the current members of a firm when a new partner joins them.
The formula for calculating the sacrificing ratio is:
Sacrificing ratio = old profit sharing ratio - new profit sharing ratio
2. Define Goodwill.
Goodwill can be defined as the intangible assets that are used for representing the firm value and the reputation of the brand name in the current market.
3. What are the Various Methods for the Treatment of Goodwill on the Addition of a New Member?
These methods for the treatment of goodwill on the addition of a new member are:
Revaluation method.
Premium method.
4. Is the Solution PDF Free to Download?
Yes. Students can download the solutions of all chapters for free on Vedantu.
5. Where can I find NCERT Solutions for Class 12 Accountancy Chapter 3: Partnership?
NCERT Solutions for Class 12 Accountancy chapter 3: Partnership can be found on Vedantu. Subjects like Accountancy have a lot of real-world applications which students can use in their daily lives. Vedantu provides students with the opportunity to download NCERT Solutions for Class 12 Accountancy Chapter 3 Partnership for free. NCERT Solutions are helpful for all Class 12 students as they will help them score well in their examinations. All the Chapters in NCERT Solutions are written in detail and are explained in simple language. These solutions are available at free of cost on Vedantu(vedantu.com) and mobile app.
6. Why is it important to ascertain a new profit sharing ratio for old partners when a new partner is admitted?
A new partner can join a firm depending on the terms and conditions of the partnership firm. When a new partner is admitted into a new firm, then the old partners in the partnership firm have to sacrifice their share of profit in favour of the new partner. This in turn leads to the reduction of the share of profit for the old partner. Therefore, for this reason, it is important to ascertain a new profit sharing ratio for old partners whenever a new partner joins the firm.
7. Is there a need to reevaluate the assets and liabilities of a firm on the admission of a new partner?
Yes, there is a need to reevaluate the assets and liabilities of a firm on the admission of new partners. When a new partner enters the firm partnership, it becomes necessary to re-evaluate the assets and liabilities of a firm. This is mainly so that in case of admission of a partner, this incoming partner is put to neither an advantage nor a disadvantage. This happens because of the change in the market value of all assets and liabilities when a new partner enters the firm.
8. What are the factors that affect goodwill according to Chapter 3 of Class 12 Accountancy?
Factors that affect goodwill can be internal and external. Internal factors refer to the factors which are within the company. While external factors refer to the factors that are a part of the economic environment of the company. Some of the factors that affect goodwill include Efficient Management, Location, Quality of Goods and Services, Contracts, Access to Supplies, After-Sale Services to Customers, Patents owned by the Firm, Effective Advertisement, and Good Customer Relations. These are important factors in terms of the goodwill of a company.
9. What is Sacrificing Ratio and why is it calculated?
Sacrificing ratio refers to the portion of profit sharing which is sacrificed by current partners when a new partner joins a firm. It is calculated as the difference between the new profit ratio and the old profit ratio. The sacrificing ratio is calculated because the new partner needs to reimburse the existing partner in order for the new partner to make the sacrifice of profit. This reimbursement is paid to the partner in terms of goodwill.