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Answer in One Sentence Only. - Book Keeping and Accountancy

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Question

Answer in one sentence only.
When is the ratio of sacrifice to be calculated?

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Solution

Sacrificing ratio needs to be calculated at the time of admission of a new partner. It is done to determine the amount of compensation that is to be paid by the new partner to the old partners in exchange for the sacrifice of profit share made by them.

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Chapter 3: Reconstitution of Partnership (Admission of Partner) - Exercise 1 [Page 107]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise 1 | Q 10 | Page 107
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