Question

old profit -new profit =?
a)gaining ratio
b)sacrificing ratio
c)new gaining ratio
d)not​

Answer 1

Answer:

option c is the correct answer

Explanation:

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Answer 2

Answer:

b)sacrificing ratio

When a new partner is admitted he is given an agreed share in profits this share is only given due to sacrifice made by the old partners from their existing profit sharing ratio hence

The ration in which the partners have agreed to sacrifice their share in profit in favour of other partner is known as sacrificing ratio.

The difference between old ratio and new ratio is the sacrifice ratio.

For example:

Old profit sharing ratio is 3:2:1 among A,B and C

New profit sharing ratio is 1:2:3 among A,B and C

Sacrificing ratio = Old ratio-New ratio

Gaining ratio= New ratio-Old ratio

A sacrifices=3/6-1/6 = 2/6

B sacrifices=2/6-2/6= No change

C gaining=1/6-3/6=2/6.

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