allerySacrificing ratio is computed as
ANew ratio − Old ratio
BOld ratio − New ratio
COld ratio + New ratio
DCapital ratio
Answer & Solution
Correct answer: B. Old ratio − New ratio
1. Sacrificing ratio is the proportion in which the old partners surrender share to the incoming partner.
2. Mathematically: Old ratio − New ratio (positive values).
3. It is used to allocate goodwill brought in by the new partner.
4. Hence (B) 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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