Question

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

Answer 1

Sacrificing ratio - It is that ratio in which the old partner have agreed to sacrifice their shares in profit in favour of new partner.

Gaining ratio - It is the ratio in which the continuous partner acquire outgoing partner's share.

The difference between sacrificing ratio and gaining ratio is :

Sacrificing ratio is calculated at the time of admission of a new partner while gaining ratio is calculated at the time of retirement of a partner.