Maharashtra State BoardHSC Arts 12th Board Exam
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What Do You Mean by 'Sacrifice Ratio'? - Book Keeping and Accountancy

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What do you mean by 'sacrifice ratio'?

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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