suggestions on profit sharing ratio

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  1. aMJ

    aMJ New Member

    Dear...I have a querry on parterahip firm profit sharing ratio...I l try to explain those wit a xample..
    If I and my frnd were partners of firm(the total invstmnt or capital of the firm is 8,00, wich 6 laksh is my share nd rest 2 is my frnds)
    What wil be the profit sharing ratio on this case?is it 6:2?
    Secndly....if infuture I invest more 2 laksh to my share in a capital....whether thre profit sharing ratio wil be differ or remains same? If differs what wil be the prrofit shrng ratio?

    Hoping for the best answers...
    Sincerely thankng u
    Ashwin mj
  2. Neha Sharma

    Neha Sharma Active Member

    Dear Ashwin

    It is not necessary that the Profit Sharing Ratio should be in proportion of the Capital contributed.

    However, in case you want to keep the profit sharing ratio in the same ratio as capital contributed, it would be as follows:-

    If you contribute 6 Lakhs, it would be 6:2
    If you further invest 2 Lakhs, it would be 8:2
  3. Sheldon Xavier

    Sheldon Xavier New Member

    Many people make a legal agreement with respect to profit sharing. Some people relate profit sharing with percentage of ownership.
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Request for suggestions Personal Finance Sep 12, 2016