BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The percentage interest in a partnership is always the same as the profit-sharing ratio. Profits and losses, in general, shall be divided in accordance with the agreement among the partners. Partners may intend for salary and interest allowances to be deducted in determining the base for computing bonus.

Detailed explanation-2: -The ratio in which the profits or losses of a business are shared. For a partnership, the profit-sharing ratios will be set out in the partnership agreement. This will show the amount, usually given as a percentage of the total profits, attributable to each partner.

Detailed explanation-3: -New profit sharing ratio: Ratio in which the partners decide to share profits/losses in future. Gaining ratio: Ratio in which the partners have agreed to gain their share of profit from other partners.

Detailed explanation-4: -The new profit sharing ratio is the ratio in which the old and new partners agrees to share the profit and loss percentage in future after the inclusion of the new partner is known as new profit sharing ratio. Few things that a new partner receives after his inclusion to an existing partnership company.