Question

The formula for calculating the sacrificing ratio is ______.

विकल्प

• New share − Old share

• Old share − New share

• Gaining Ratio − Old Ratio

• Old Ratio − Gaining Ratio

Answer 1

The formula for calculating the sacrificing ratio is Old share − New share.

Explanation:

The sacrificing ratio is a concept used in partnership accounting when a new partner is admitted. When a new partner joins the firm, the existing partners must give up (sacrifice) a portion of their share of profits to accommodate the new partner’s share. 

The formula helps to quantify exactly how much each old partner has given up: 

Sacrificing Ratio = Old Share − New Share