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प्रश्न
State the purpose for which ‘sacrificing ratios’ are calculated.
लघु उत्तरीय
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उत्तर
The purpose of calculating the sacrificing ratio is to determine how much of their share existing partners are giving up in favor of a new partner. It helps in:
- Adjusting goodwill: So the new partner can compensate the existing partners for the share they are sacrificing.
- Distributing future profits: Based on the new profit-sharing arrangement after admission of the new partner.
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