Sacrificing ratio is
AThe ratio of indirect taxes paid by partners
BThe ratio of losses borne by the new partner alone
CThe ratio of profits sacrificed by old partners in favour of the new partner
DThe ratio of capitals contributed by old partners
Answer & Solution
Correct answer: C. The ratio of profits sacrificed by old partners in favour of the new partner
Sacrificing ratio = Old share − New share for each old partner. It determines how the new partner's incoming share is carved out of the old partners' shares.
Related questions
Das and Sinha share 4:1; Pal is admitted for 1/4 share, acquired entirely from Das. The neSacrificing ratio is computed asWhen a new partner brings goodwill in CASH, the journal entry typically isAnshu and Nitu share 3:2 and admit Jyoti for 3/10 share, which she acquires 2/10 from AnshIf after revaluation a profit of ₹30,000 is shown, it is distributed amongIn Revaluation Account, an INCREASE in the value of an asset is recorded on theRam and Shyam share 3:2 and admit Ghanshyam. Ram sacrifices 1/4 of his share and Shyam 1/3Akshay and Bharati share 3:2. Dinesh is admitted for 1/5 share, taken equally from Akshay