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What is the sacrifice ratio? - Book Keeping and Accountancy

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Question

What is the sacrifice ratio?

Short Answer
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Solution

Sacrifice ratio is the ratio in which the old partners give up (sacrifice) their share of profit in favour of a new partner at the time of admission.

It is calculated as:

Sacrifice ratio = Old share − New share (for each old partner).

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Chapter 3: Reconstitution of Partnership (Admission of Partner) - Exercise 3.1 (Objective Type Questions) [Page 160]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise 3.1 (Objective Type Questions) | Q 1. (F) 4. | Page 160
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