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Sacrificing ratio is used for which purpose?

Answer and explanation

Correct answer: To distribute goodwill among old partners

Sacrificing ratio shows how much profit the old partners have given up. Goodwill compensation is distributed on this basis.

Related tags

Sacrificing RatioGoodwill DistributionConceptGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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