Question

State the difference between sacrificing ratio and gaining ratio? Atleast 3 points each?​

Answer 1

Answer:

Sacrificing Ratio:-

1. It is the proportion in which old partners sacrifice their share in favour of new partner.
2. Sacrificing Ratio = Old Ratio – New Ratio
3. Total of each old partner's Sacrifice will be equal to new ratio of new admitted partner.

Gaining Ratio:-

1. Proportion in which continuing partner gain the share of outgoing partner on his retirement.
2. Gaining Ratio = New Ratio – Old Ratio
3. Total of gaining share of each partner will be equal to the old ratio of retired partner.

Hope it helps! ! !

Answer 2

ANSWER:-

Sacrificing Ratio:-

1. It is calculated to ascertain the share of profit and loss given by the existing partners in favour of new partners.

2. It is the ratio in which old partner agree to sacrifice their share of profit in favour of new partner.

3. It is calculated at the time of admission of new partners.

4. Sacrificing ratio = Old ratio - New ratio.

5. It reduces the profit sharing ratio of the existing partners.

Gaining Ratio:-

1. It is calculated to ascertain the share of profit and loss acquired by the remaining partners from retiring or decreased partner.

2. It is the ratio in which continuing partner aquires the share of profit from outgoing partner.

3. It is calculated at the time of retirement or death of old.

4. Gaining ratio = New ratio - Old ratio.

5. It increases the profit sharing ratio of the remaining partners.

HOPE IT HELPS.