Profit and Loss Sharing Ratio
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MS: Nisbah Perkongsian Untung Rugi · EN: Profit and Loss Sharing Ratio · ZH: 损益分配比率
Meaning
The profit and loss sharing ratio is the rate agreed by the partners for dividing the net profit or loss. It is set out in the partnership agreement and applied after taking into account salaries and interest on capital.
Example
Lestari Partnership has a profit and loss ratio of 3:2 between Lina and Musa; a remaining profit of RM25,000 is divided as RM15,000 to Lina and RM10,000 to Musa.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5