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If the new partner’s share is taken equally from the old partners, what will be the sacrificing ratio of the old partners?

Answer and explanation

Correct answer: 1:1

The sacrificing ratio is the ratio of the profit shares surrendered by the old partners. When the new partner’s share is taken equally from both old partners, their sacrifices are equal; hence, the sacrificing ratio is 1:1. Exam tip: Sacrifice = Old Profit-Sharing Ratio − New Profit-Sharing Ratio.

Related tags

Admission Of PartnerSacrificing RatioNew Profit Sharing RatioPartnership AccountsClass 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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