The ratio at which old partners surrender a part of their old shares in favour of incoming partner is ____________.

Gaining ratio

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Sacrificing ratio

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Profit sharing ratio

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None of the Above

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Solution

The correct option is B Sacrificing ratio
Sacrificing ratio is nothing but the proportion in which old partners sacrifices their share in favour of new partner. Therefore, the surrender of share by old partner in certain ration is nothing but the sacrificing ratio. It is calculated by subtracting new ratio from the old ratio.

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