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MCQ
Fill in the Blanks
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called ____________.
Options
Capital ratio
Sacrificing ratio
Gaining ratio
None of these
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Solution
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called Sacrificing ratio.
Concept: New Profit Sharing Ratio and Sacrificing Ratio
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