Sacrificing ratio is _____________.

Old profit sharing ratio - new profit sharing ratio

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New profit sharing ratio - old profit sharing ratio

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Equal to old profit sharing ratio

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Equal

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Solution

The correct option is A Old profit sharing ratio - new profit sharing ratio
On admission of new partners, existing partners may require sacrificing from their existing profits.
The formula to calculate sacrificing ratio for partner individually= Old profit sharing ratio - new profit sharing ratio(should be positive).
However, gaining ratio= New profit sharing ratio- old profit sharing ratio.

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Similar questions

Q. Old profit sharing ratio minus new profit sharing ratio is equal to _______________.

Q. When a new partner acquires his share of profit from an old partner, the profit sharing ratio becomes necessary to calculate.

Rao and Swami are partners in a firm sharing profits and losses in 3 : 2 ratio. They admit Ravi as a new partner for $\frac{1}{8}$ share in the profits. The new profit sharing ratio between Rao and Swami is 4 : 3. Calculate new profit sharing ratio and sacrificing ratio.

Q. At the time of admission of new partner, old partner's profit sharing ratio is not changed, the sacrificing ratio is ______.

A, B

and

C

are partners sharing profits in the ratio of

2 : 2 : 1

D

is admitted as a new partner for

1 / 6^{t h}

share.

C

will retain his original share. Calculate the new profit sharing ratio and sacrificing ratio.

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