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What is sacrifice ratio?
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Solution
The ratio in which the new partner (who has joined a partnership firm) is given the share by the existing partners of the firm is called sacrificing ratio. So, it is the ratio in which the existing partners sacrifice their share of profit in favour of the new partner. Algebraically, it is expressed as:
Sacrifice ratio = Old ratio – New ratio
Concept: Admission of a Partner - Sacrifice Ratio and New Ratio
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