If the deed gives both old ratio and new ratio, from what will sacrifice ratio be calculated on admission of a new partner?

Correct answer: Old share minus new share

Direct answer: Option A, old share minus new share. Sacrifice ratio measures how much of the existing partners’ old profit share is given up to admit the new partner. Step by step: write each old partner’s old ratio; write that partner’s new ratio after admission; subtract the new share from the old share for each old partner, using the same denominator or equivalent fractions; the positive differences form the sacrificing ratio; the new partner’s gain is normally supplied by these sacrifices. Option A states this exact calculation. Option B, adding new shares, does not measure the reduction suffered by old partners and cannot by itself produce a sacrifice ratio. Option C, dividing capital by profit, mixes unrelated figures; capital may affect other calculations but is not the formula for sacrifice. Option D, subtracting drawings from capital, calculates neither a profit-share reduction nor a ratio of sacrifice. A useful check is that an old partner who gives up more of the old share should have a larger sacrifice figure. If a partner’s new share is greater than the old share, that partner may be gaining rather than sacrificing, so the facts must be checked carefully; the supplied wording asks for the standard formula. Memory cue: sacrifice equals what was old but is no longer retained: old share minus new share.