Differentiate between sacrificing ratio and gaining ratio.

Open in App

Solution

Sacrificing ratio is calculated at the time of admission of a partner.

Sacrificing Ratio = Old ratio – New ratio

While gaining ratio is calculated at the time of retirement of death of a partner.

Gaining Ratio = New ratio – Old ratio

Suggest Corrections

Similar questions

Give any one distinction between sacrificing ratio and gaining ratio.

Q. Short answer type question:
Give any one distinction between sacrificing ratio and gaining ratio.

Q. Distinguish between the sacrificing ratio and the gaining ratio among partners.

The sacrificing partner’s capital account is debited with his/her share of goodwill and gaining partner’s capital account is credited in their gaining ratio.

Sacrificing ratio =

Join BYJU'S Learning Program

Differentiate between sacrificing ratio and gaining ratio.

Sacrificing ratio is calculated at the time of admission of a partner. Sacrificing Ratio = Old ratio – New ratio While gaining ratio is calculated at the time of retirement of death of a partner. Gaining Ratio = New ratio – Old ratio

Sacrificing ratio is calculated at the time of admission of a partner.

Sacrificing Ratio = Old ratio – New ratio

While gaining ratio is calculated at the time of retirement of death of a partner.

Gaining Ratio = New ratio – Old ratio