Question

The proportion in which old partners make a sacrifice is called ________ ratio. (Fill in the blank by choosing correct option)
a) capital
b) gaining
c) sacrifice
d) new

Answer 1

Opition"b' gaining ratio
And c sacrifice

Answer 2

Answer:

c) sacrifice

Explanation:

The proportion in which old partners make a sacrifice is called the sacrificing ratio.

The proportion in which current partners agree to sacrifice their share of earnings to the incoming partner is called the ratio of sacrifice. ... Then, the fresh ratio of the current partner is calculated by separating in their current proportion the remaining share of the profit.

The sacrifice ratio is used in the following scenario:

1) When a partnership company's current partners agree on a change in the profit-sharing ratio.

2) when a new partner is admitted and the sum of goodwill carried by him or her is transmitted in the sacrifice proportion of the old partners.