sacrificing ratio is calculated by subtracting old ratio from new ratio? is it true or false
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Sacrificing ratio is nothing but the proportion in which old partners sacrifices their share in favour of new partner. ... It is calculated by subtracting new ratio from the old ratio. Hence, sacrificing ratio is equal to old ratio - new ratio.
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Explanation:
This statement is False. Reason: When a new partner is admitted, old partners have to sacrifice their profit share in favour of new partner and their old ratio gets reduced and whatever ratio left becomes a new ratio. ... By interchanging the terms, Sacrifice Ratio = Old Ratio – New Ratio.
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