Profit sharing ratio. net/sites/default/files/d81s/ecutek-g35.

This formula calculates how much money employees will receive based on company profits. A and B are partners and share profits in the ratio of 3:2. [1] [2] [3] In publicly traded companies, these plans typically amount to allocation of shares to employees. Step 3: Distribute the calculated remaining share among the old partners in their old profit-sharing ratio. The goodwill of the firm was valued at Oct 27, 2021 · A, B and C were partners sharing profit or loss in the ratio of 7:3:2. The formula for profit sharing plan calculation is: Profit Sharing Plan = (Total Profit x Percentage Allocation) / Number of Employees. C. Find out the new profit sharing ratio in this case. Jan 12, 2024 · Profit share ratio. 15%. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. With effect from 1st April, 2018, they decided to share future profits equally. Solution: Question 14. Multiply the value of one share by each partner's ratio value to find their individual profit share. The percentage of profit that partners have committed to giving up to benefit other partners. Details regarding taxes. Sacrificing ratio = Old Ratio – New Ratio. , a year). Their share of gains or loss at the conclusion of the year is as follows: x: y = (P's profit share) : (Q's profit share) If two people, P and Q, each invest Rs. Profits for the years ended 31st March, are: 2016-17 − ₹ 7,500; 2017-18 − ₹ 4,000; 2018-19 − ₹ 6,500. The sharing ratio is mutually agreed upon among the partners of the firm. Jul 7, 2024 · The profit sharing ratio in partnership is agreed upon while serving up the agreement of partnership. The profit sharing ratio may be expressed in a number of different forms. New Profit sharing ratio = Old share of profits + share of profits acquired from the retiring partner (gain). Their partnership agreement states that profits and losses will be divided in proportion to the amount in each partner’s capital account on the last day of the year. 14%. Y in a firm for a year. This is because the new partner has the right to the firm’s future profits. If two people, P and Q, each invest Rs. ly/Vishwaas_Batch📝 For complete notes of Lectures, visit Viswaas Batch in the Batch Section of Physics Jan 25, 2024 · Record the necessary journal entry for the distribution of the balance int he Profit and Loss Account immediately before the change in the profit-sharing ratio. The system pre-deducts the profit sharing ratio of the daily profit earned in advance. Mar 12, 2024 · Langkah 4: Bagian keuntungan Mitra A = Laba bersih x 60% dan Bagian keuntungan Mitra B = Laba bersih x 40%. Here is the list of all Solutions. They contributed Rs. The profit-sharing formula or ratio. Gaining ratio= New Ratio – Old Ratio (if positive) Solved Examples for You Apr 11, 2024 · Solution to Question number 29 of the Change in Profit Sharing Ratio Chapter 4 of TS Grewal Book class 12 CBSE 2024-25 Edition. It's useful for calculating how much new investors would have to pay to appease existing investors who take a financial hit. 20%. Solution: Question 2. In the profit share example above the calculated profit share is 31,915. Partner A contributes $200,000 while Partner B contributes $100,000. A profit sharing contract is a legal agreement that parties use to establish how profits from a joint project, business venture, or investment will be divided. From Jan 1, 2019 they decided to share profit or loss in the ratio. Total assets of the business firm Rs. Steps Determine the new profit sharing ratio of the old partners – The new profit sharing ratio is either mentioned as per the agreement between the partners or is the 2) Distributed among the partners in their new profit-sharing ratio. Due to change in the profit-loss sharing ratio, B’s gain or sacrifice would be : Gain 1/60. Step 2: Calculate the New Profit-Sharing Ratio of the remaining partners by simply striking off the share of the retiring partner. 2,40,000 and liabilities Rs. 10000 Payable to Partner A. Include how the profits and losses will be split as well as how and when each partner will get paid. Problem 2: Ross and Phoebe are partners in a firm and share profit and loss in the ratio 5:3. Ratio Sacrifice. A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Brief Explanations are Given: In the Class 12 Accountancy Jun 25, 2024 · Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific Aug 5, 2022 · There is no one-size-fits-all answer for what a good profit-sharing ratio is for all businesses. Compare the advantages and disadvantages of equal share, ratio-based, fixed and variable, and hybrid formulas. This ratio is important for a partnership to calculate. Apr 11, 2024 · Share your love. Profit sharing refers to various incentive plans introduced by businesses which provide direct or indirect payments to employees, often depending on the company's profitability, employees' regular salaries, and bonuses. As and when they feel for the change in such, it can be processed through partnership deed change. It has been observed that only few Institutions offering Islamic Banking are regularly updating weightages & Profit sharing ratios, before beginning of the period concerned, on their websites Feb 7, 2024 · The gaining ratio is calculated at the time of retirement or the death of a partner. In that case, this modification is known as the reconstitution of the profit and loss ratio of the partnership deed. The system calculates the net P&L made by Followers on a daily basis, offsetting the profit and loss amount over the settlement cycle. 3 days ago · Profit-making partners should compensate the sacrificial partner/partners in the profit-sharing ratio. Target Profit Sharing Ratio to Policy Owner. Oct 12, 2017 · For full course, visit: https://academyofaccounts. Sep 14, 2018 · Change in Profit (loss) Sharing Ratio: Profit sharing ratio is surely interest for the partners and it completely depends on the mutual consent of the partners. 000 26,000 5,800 Both are equally responsible for managing the partnership’s day-to-day operations. The Time-period that you will consider for calculating profit. f. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. A. When the partner retires, the profit sharing ratio of the continuing partners gets changed. Partners are free to agree the sharing ratios between them, although the allocation of profits or losses for an accounting Sep 9, 2009 · As interest-bearing deposits are not permitted by the rules and principles of the Islamic Shari’ah, Islamic banks typically raise deposits in the form of profit-sharing investment accounts. The ratio of gain of profit sharing ratio is called gaining ratio. of 8:4:3. As a general rule, if there are two people in the partnership, it’s 50/50, and if there are three people, it’s a ⅓ split. New Profit-Sharing Ratio – It is the ratio in which all the partners including the newly admitted partners will share the future profits & losses of the partnership firm. Suppose A, B and C are partners sharing in the ratio 3:2:1 and, (a) A retires (b) B retires (c) C retires. Value of Goodwill will be: Rs. 15th April 2019 . A, B and C are partners sharing profit in the ratio of 5:3:2 C retires and his share is entirely taken by A. C acquires 1/5th share from A. The profit sharing ratio will be 9:6:5. In case the new profit sharing ratio A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. Rs. It is a way for employees to share in the financial success of the company based on its performance. For example, if one partner has a 60% profit-sharing ratio and another has a 40% profit-sharing ratio, profits and losses will be distributed accordingly. Thus, if the first part shows a profit than the second part will show loss and vice versa. Distribute profit among A, B and C if: (a) C's share of profit is guaranteed to be ₹ 6,000 Minimum. This ratio is determined at the time of a new partner’s admission. If I select that my capital contribution would be a total of 10,000/- ie. (b) Minimum profit payable to C amounting to ₹ 6,000 is guaranteed by A. Jun 28, 2024 · The ratio in which the profits or losses of a business are shared. In this situation, we calculate the new profit sharing ratio of the remaining partners by simply removing the retiring partner’s share. The ratio in which the partners have agreed to gain their share of profit from other partners. Q16. Dec 19, 2020 · On the above date, they decided to change their profit-sharing ratio to 3 : 5 and agreed upon the following: (a) Goodwill be valued on the basis of two years’ purchase of the average profit of the last three years. 1st April,2018 . Based on these balances and additional Jul 22, 2020 · 9. 06. What will be the New profit ratio among partners will be: Explanation 4 days ago · Problem 1: Jake and Gina are partners in a firm and share profits in the ratio of 3:1. Calculate new profit-sharing ratio. Simple Ratio [Natural Numbers represent shares] May, Day and Way are partners sharing profits in the in the ratio 1 : 3 : 4. Ch-3 Change in Profit sharing ratio of Partners. Calculate the new profit-sharing ratio and sacrificing ratio. Whatever may be the form in which the ratio is expressed it can always be converted to a form convenient to us for being used in problem solving. Solution 31. Record the necessary journal entry for the distribution of the balance in the Profit and Loss A/c immediately before the change in the profit-sharing Calculate the new profit-sharing ratio. They admit Ravi as a new partner for 1 8 share in the profits. The biggest thing to remember is that no matter how you split your profits, the percentage must equal 100. A participating insurance plan is designed to be held long term. Answer: Distributed among the partners in their old profit-sharing ratio. 12%. This can be done through cash bonuses, stock options, or other forms of rewards. 20000 = Rs. Before starting your Copy Trading, please note the following rules: 1. Solution: Question 12. This is done using appropriate formulas. These accounts differ from conventional deposits not merely by virtue of the profit-sharing nature of the returns they offer, but also because the contact between the depositors and the bank is not a debt It is permissible to have equal capital investment at 50/50 and have a profit-sharing ratio at 60/40 whilst both are working partners. Ratio sharing means that each partner receives a percentage of the profit based on their contribution value. F acquires 1/5th share from E . A and B are partners in a firm sharing profits in the ratio of 4 : 1 . 2 days ago · Traditional law firm profit sharing formulas. May 22, 2023 · Learn how to calculate and distribute profits among partners in a partnership using different formulas. calculate new profit-sharing ratio of A and B. * Notes: Bitget copy trading updates: Bitget elite trader tiers. 5000/- each. A key component of any profit sharing agreement is defining an appropriate ratio for proportioning profits amongst partners according to their contributions. Calculate new profit sharing ratio and sacrificing ratio. The weightages & Profit sharing ratios are used by Banks to calculate distribution of profit as per the requirements of Shariah covering Islamic Banking. The profit-sharing payments depend on the: With a profit-sharing plan (PSP), employees receive an amount based on the company’s earnings over a specific period of time (e. An equitable business agreement should include: Contributions. State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in profit sharing ratio amongst the existing partners. In other words, if the company generated only $1 Revenue sharing can take the form of a profit-sharing system in which each entity is reimbursed for its contributions. 40,000. Determine the gaining ratio. A, B and C are partners in the firm sharing profit in the ratio of 5:3:2 respectively B retire and his share is taken up by A and C in the ratio of 2:1. The balances left in the ledger of John and Harry after they prepared their trading account for the year ending 31 December 2018 are given below. A and B are partners sharing profits and losses in the proportion of 7: 5. Oct 29, 2022 · In this video we are discussing :Comprehensive question | Partnership | Average profit | Class 12 Subscribe Our Channels –Rajat Arora : https://youtube. Learn what the profit sharing ratio is and understand how to ca Rao and Swami are partners in a firm sharing profits and losses in 3 : 2 ratio. D is admitted as a new partner for 1/6th share. On the date of change in the profit-sharing ratio, the Profit and Loss A/c showed a credit balance of Rs 1,50,000. Examples of New Profit Sharing Ratio. Case 2. New profit sharing ratio among partners will be: Dec 14, 2019 · We explain how to calculate the profit sharing ratio for Partnerships as a form of ownership. Continuing partners distribute the share of retiring partners among them. A and B were partners sharing profits equally. The Balance Sheet of A and B as on 1. Dec 13, 2023 · Profit sharing is a type of pre-tax contribution plan for employees that gives workers a certain amount of a company’s profits. Profit sharing. With effect from 1st April 2023, they agreed to share profits equally. Baca juga: Cara Menghitung Keuntungan Bisnis dengan Analisis Profitabilitas. 1,2019 they decided to share profit or loss in the ratio of 8 : 4 : 3. X, Y, and Z are partners sharing profits in the ratio of 5:3:2. Goodwill does not appear in the books: Profit sharing is a compensation arrangement where a company distributes a portion of its profits to its employees. Question 4. Apr 17, 2022 · Here is the list of all Solutions of Change in Profit sharing ratio of TS Grewal class 12 CBSE 2022-23. Due to change in the profit sharing ratio, B’s gain or sacrifice will be: a) Gain 1/60. Any other important clauses. They earned a profit of ₹ 30,000 during the year ended 31st March, 2019. Suppose the profit and loss sharing ratio is amended or modifications of the profit and loss sharing ratio are made. This will show the amount, usually given as a percentage of the total profits, attributable to each partner. & the profit sharing would be 50-50 What does this mean actually. 4) Carried forward to a new balance sheet. This ratio determines how profits and losses will be distributed among partners. Amount of Compensation payable by Gaining Partner to Sacrificing Partner = Firm’s Goodwill Value × Share of Profit Gained = 2/10 × Rs. Example: If A and B are partners sharing profits in the ratio of 3:2 and they decide to share profits equally, then: A’s Sacrificing Ratio = (3/5 – 1/2) = 1/10 B’s Sacrificing Ratio = (2/5 – 1/2) = -1/10 (negative indicates a gain) Oct 24, 2022 · The purpose of this profit sharing calculator is to calculate profit share to be paid to employees. Anurag Pathak is an academic teacher. Working Note:- Profit Sharing Rules. If you're a small business owner looking to establish an employee profit sharing plan, you must take certain basic steps to set it up: A, B and C were partners sharing profits in the ratio of 4: 3: 2. orgWhatsapp : +91-8800215448Described the effect of change in profit sharing ratio of partners and procedur Jun 17, 2019 · I’m planning to open an LLP. Calculate the old profit-sharing ratio. Dec 20, 2022 · #cbseboard2023 #class12 #cbseboard #class12accountancy #accountancy #accountsclass12 Change in profit sharing ratio | ONE SHOT | Class 12 Accountancy Board e A and B are partners in a firm, sharing Profits and Losses in the ratio of 3:2. Aug 5, 2022 · Accumulated profits are distributed in old profit sharing ratio, at the time of change in profit sharing ratio amongst the existing partners. Apr 5, 2023 · Step 1: Let the total share be 1. 30,000 and Rs. The new profit sharing ratio among the partners would be-Ans. 80,000. We use this method when the new partner decides not to bring his share of goodwill in cash. X for m months and Rs. Profit-sharing ratio. Sandeep and Navdeep are partners in a firm, sharing profits in 5:3 ratio. If the sole working partner is the partner with 40% profit sharing Apr 20, 2023 · Debited to the current accounts of partners in their agreed profit and loss sharing ratio; Credited to the profit and loss appropriation account; Example. K acquires 2/3 share from D . The new profit sharing ratio between Rao and Swami is 4 : 3. Your premiums will be invested in a variety of assets according to our investment strategy, with the cost of policy benefits (such as charges to support guarantees (if applicable)) and expenses deducted as appropriate from premiums or Illustration 2. Calculate new profit-sharing ratio after E's admission. This Video computes the new profit sharing ratio amongst the partners when only profit of new partner is given. This means that a debit entry is needed in the Appropriation Account. Regards Change in Profit Sharing Ratio MCQ – Question 1:-D , E and F are partners sharing profits and losses in the ratio of 1:2:1 respectively. Apr 24, 2023 · Pranav, Karan, and Rahim are partners sharing profits and losses in an agreed ratio With effect from 1st April 2023, they agreed to share profit in the ratio of 3 : 3 : 4. Browse more Topics under Retirement Of A Partner Solved Example for You. There can be following cases: Case 1. Solution: Question 3. Question 31. Example 1: Avi, Bob, and Charles set up a partnership firm on April 1, 2018. Due to change in the profit-loss sharing ratio, B’s gain or sacrifice will be : (A) Gain \(\frac{1}{60}\) (B) Sacrifice \(\frac{1}{60}\) (C) Gain \(\frac{2}{60}\) (D) Sacrifice \(\frac A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. Question 5 : – A , B and C are partners sharing profits and losses in the ratio of 1 : 2 : 3 . b) Sacrifice 1/60. Let's calculate each partner's share: The calculation of Gaining Ratio is done in the following two ways: Case 1: The new profit sharing ratio is not given. It takes into account the total profit, the percentage allocation, and the number of employees. * The maximum profit share ratio in the table above refers to the maximum profit share ratio that elite traders can set (not in private mode). Oct 5, 2023 · Partners can also agree to a specific profit-sharing ratio in their partnership agreement. Solution: Old Profit ratio = 3:2:1 (a) A retires: new profit sharing ratio is 2:1 (b) B Nov 14, 2018 · Record the necessary journal entry for the distribution of the balance int he Profit and Loss Account immediately before the change in the profit-sharing ratio. . 50,000, Rs. A, B and C will share future profits and losses equally. On 1st April, 2016, their Balance Sheet was as follows: Liabilities. In some agreements there is a first charge on profits, which is an allocation We can alternatively write the formula for the sacrifice ratio as: 1. e. 000 200 44,000 36. Profit sharing is typically used as an incentive The new profit sharing ratio is the agreed proportion in which the distribution of the future profit to the firm’s partners (both old and new) is to take place. Sacrifice 1/60. The solution to this question is as follows: 11. A, B and C had been partners sharing profit or loss in the ratio of 7 : 3 : 2. For a partnership, the profit-sharing ratios will be set out in the partnership agreement. com/c Feb 13, 2023 · In this case. It is the ratio in which the remaining partners acquire the outgoing partner’s share of profit. They admitted C as a new partner for 5/10 share, wherein she acquired 3/10 from A and 2/10 from B. Ravi and Mukesh are sharing profits in the ratio of 7: 3. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases: Case 1. Aug 28, 2021 · Answer : Gain 1/12. Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. Apr 7, 2023 · Solutions of change in profit sharing ratio of TS Grewal Book Class 12 Accountancy 2023-24 Edition. Salary plus sharing means that each partner receives a fixed salary plus a share of the May 28, 2018 · This study aims to analyse the influence of Bank Stability, Bank Size, Mudharabah Deposits, Profit Sharing Level, Non-Performing Financing, and Operational Efficiency Ratio (BOPO) to the Oct 14, 2021 · Profit-Sharing Ratio Calculation. New Profit Sharing Ratio – Example 1. Illustration: M and N are partners sharing profits and losses in the ratio of 4:3. Angka yang dihasilkan adalah jumlah uang sebenarnya yang akan diterima masing-masing mitra sebagai bagiannya dari keuntungan kemitraan. Illustration 1: profit available for sharing in the profit and loss sharing ratio. 1/2 × Rs. They also decided to record the effect of the following without affecting their book values. (Delhi 2013) As a result of change in profit sharing ratio, one or more of the existing partners gain some portion of other partner’s share of profit. Sep 26, 2022 · Vishwaas - 12th Commerce Enrollment Link: https://bit. C acquires 1/5th share equally form A and B. Solution to Question number 6 of the Change in Profit sharing ratio chapter 4 of TS Grewal Book class 12 CBSE 2024-25 Edition. Specific clauses of the ratios on contribution will help prevent one party from taking all the profits. They admit C into the firm, and the new profit-sharing ratio was agreed at 4:2:1. When partners decides to change their existing profit sharing ratio, we need to calculate sacrificing and gaining ratio of all the partners. A, B and C were partners sharing profit or loss in the ratio of 7 : 3 : 2. It is calculated as follows: Gaining Ratio = New Ratio – Old Ratio. Question number 1 to 4 of TS Grewal solution 2021 edition are related to sacrificing and gaining share. 1. 20,000. From Jan. Calculate the sacrificing ratio. We now transfer the profit or loss in the second part to all the partners capital account including the new partner in their new profit sharing ratio. Feb 1, 2024 · The ratio of a participant's points to the total points of all participants determines the participant's percent of the overall profit sharing contribution. c) Gain 2/10. To arrive at the new ratio, Rahim takes 1/5th share equally from Pranav and Karan. Good will is to be valued at 2 years purchase of average profits of last 3 years profits. Change in Profit Sharing Ratio when Profit or Loss adjusted through Capital Account. I need advice on the financial aspect kindly let me know how canni reach to you for Getting financial Advice. They decided to share future profits in the ratio of 3 : 2 w. g. The agreement will outline a formula on how profits will be earned and split, as well as address the parties’ roles, contributions, performance, and other important terms. Set Terms and Conditions – Terms and Conditions can include: the ratio amount invested, information on both parties, and other relevant information that needs to be outlined in the agreement. Aug 7, 2018 · Going forward, he also planned to use the 10% threshold to determine his profit sharing pool regardless of how much profit the company earned. A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Oct 13, 2023 · It is essential to draft a comprehensive business agreement that outlines the profit-sharing structure. Case 4. The double entry is completed by a credit entry in the current account of the partner to whom the salary is paid. The solution to this question is as follows: Rao and Swami are partners in a firm sharing profits and losses in 3 : 2 ratio. Ash, Nisha, and Disha shared profits and losses in the ratio of 3 : 2 : 1 respectively. 20000. Case 3. To know sacrificing ratio old ratio – new ratio is used. They decide to share future profits in the ratio of 3 : 2 : 1 . ₹. QUESTION 9. Sacrificing ratio = Old profit sharing ratio – New profit sharing ratio. Defined profit-sharing ratio. 2018 was as follow: Liabilities Amount Amount Assets Amount Amount Sundry Creditors Bill Payable Bank Overdraft Capital Account: А B 12,900 Building 4,100 Furniture 9,000 Stock-in-Trade Debtors Less: Provision 80,000 Investment Cash 1. Annual profit shown by a business is Rs. 30,000. There are some important features of the Class 12 Accountancy notes that are discussed below -. M. Solved Example on Revaluation Account. 10%. Normal rate of return 10%. Usually, companies do this yearly. In his guidance, thousands of students have secured good marks in their board exams The Change in Profit Sharing Ratio of Partners Class 12 notes are created by our subject matter experts in a creative way so that students can easily build a strong foundation for the chapter. How To Create a Small Business Profit Sharing Plan. New Profit Sharing Ratio. 100000 = Rs. Profit-Sharing Ratio (New Profit-Sharing Ratio) The proportion at which the partners agreed to share future profits and losses. Let’s look at a profit sharing example. Terry is admitted into a partnership for 1/8th share of profits. 20,000, respectively as their capitals and agreed to share profits and losses in the ratio of 5:3:2. The ratio at which the partners decide to share profits/losses in future. This amount is the agreed percentage (25%) of the net income (127,660). When the partner retires, the profit-sharing ratio of the continuing partners gets changed. E joins the partnership for 20% share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Continuing partners distribute the share of retiring partner among them. However, if there is only one working partner, the working partner must be the party with 60% profit sharing ratio for this to be permissible. Jan 30, 2024 · Sacrificing Ratio = Old Ratio – New Ratio. The timing of profit sharing. Oct 5, 2019 · Practice Questions for Class 12 Accountancy. Thus, we need to raise the goodwill account in the books by debiting Goodwill account and crediting old partners’ capital accounts in the old profit-sharing ratio. Any other pertinent details about how you will calculate the profits. It was decided that w. The ratio in which the partners have agreed to sacrifice their share of profit in favour of other partners. 3) Distributed among the partners in their old profit-sharing ratio. Amount credited to Partner A & B Capital A/C will be in sacrificing ratio that is 1:1. Gaining Ratio = New Ratio – Old Ratio. The profit for 2016-17, 2017- 18 & 2018-19 w ere -`42,000, `-`48,000 & -`60,000 Apr 5, 2023 · Steps to determine the New Profit-Sharing Ratio: Step 1: Convert the old profit-sharing ratio into the simplest form by taking L. A , D and K are partners sharing losses / otherwise in the ratio of 3 , 9 and 1 respectively. If there are 10 equity partners involved in a firm, and the firm made $1 million in net profit, the following would be the calculation per partner: $1,000,000 net profit / 10 equity partners = $100,000 profit per partner. A retires, assuming B and C will share profits in the ratio of 2: 1. Y for n months, then, Divide the total profit by the sum of the ratio values to find the value of one share. A, B & C a re partners sharing profit & losses in the ratio of 5:4:1. X and Rs. C will retain his original share. Details regarding any exceptional cases. PM137000 - Profit sharing arrangements S19, S24 Partnership Act 1890. The assets each partner is contributing to the business. For example, let's say there are two partners, A and B, with a profit-sharing ratio of 3:2, and the total profit is $5,000. Step 2: Calculate the remaining share of the old partner by deducting the new partner’s share from the total share. The amount of the profit share is based on the input assumptions. mp xx yn uc oo zr qo dt qu wx