Partnership Change in PSR Notes1

Study Material & Notes for the Chapter 3

Partnership - Change in Profit Sharing Ratio

I.   DETERMINATION OF SACRIFICING & GAINING RATIO

A.  Definitions

Table 4.1.A1

B. Sacrificing/(Gaining) Ratio  

Sacrificing/(Gaining) Share = Old Share – New Share  

If a Partner’s Old Share – New Share is Positive (+) figure then the partner has made a sacrifice 

If a Partner’s Old Share – New Share is Negative (-) figure then the partner has made a gain 

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