Class 12 Accountancy Reconstitution of Partnership firm Notes
Reconstitution of Partnership firm. ... Short & Easy Notes for Board Exam #1. What do you mean by reconstitution? In what condition reconstitution take place? => when there is change in the relation between partners without affecting the existence of partnership firm, is called reconstitution. following are the condition in which reconstitution take place:- i.change in profit sharing ratio of the partners. ii. Admission of the partners. iii. retirement of the partners. iv. Death of the partners. v. Amalgamation of two or more firms. #2. What do you mean by sacrificing ratio? => when existing partner have to surrender of their share in favour of other partners is called sacrificing ratio. Sacrificing ratio = old ratio - new ratio #3. What do you mean by gaining ratio? => It is the ratio in which new partner has increased their share from old one. Gaining ratio = new ratio - old ratio #4.Difference between sacrificing ratio and gaining ratio. => Sacrificing r...