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On admission of a partner, the existing profit-sharing ratio between old partners is called
ASacrificing ratio
BGaining ratio
COld ratio
DNew ratio
Answer & Solution
Correct answer: C. Old ratio
1. The 'old ratio' refers to the profit-sharing ratio of partners before reconstitution.
2. Sacrificing ratio = Old ratio − New ratio; it shows what the old partners give up.
3. Gaining ratio arises in retirement/death cases.
4. Hence (C) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.1 ¶§3.1_
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