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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]
