Question

give formula of sacrifice ratio?​

Answer 1

Formula of Sacrifice Ratio:

Sacrifice Ratio = Old Ratio - New Ratio

Sacrifice Ratio: When a new partner is admitted, the existing partners have to sacrifice their share of profit so as to give the share of profit to the new partner.

The ratio in which these old partners sacrifice their profit share is called as sacrifice ratio.

Let's see how Sacrifice Ratio is calculated using an example.

Calculation of Sacrifice Ratio:

Suppose: A and B are partners sharing profits in the ratio of 3 : 2. C is admitted as a partner. The new profit sharing ratio of A, B and C is 5 : 3 : 2. Find the sacrifice ratio.

Answer:

Sacrifice ratio = Old Ratio - New Ratio

A's sacrifice = 3/5 - 5/10 = 1/10

B’s Sacrifice = 2/5 - 3/10 = 1/10

Sacrifice ratio of A and B = 1/10 : 1/10 = 1 : 1