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If both old ratio and new ratio are given what is the correct way to calculate sacrificing ratio?

Answer and explanation

Correct answer: Old share minus new share for each old partner

Sacrificing ratio is based on actual reduction. Subtract each old partner's new share from old share.

Related tags

Sacrificing RatioFormulaExam TipGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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