Why is it wrong to distribute accumulated profit in sacrificing ratio?

Correct answer: Because accumulated profits are shared in old profit sharing ratio

The direct answer is option A. Accumulated profit is profit earned before the new partner enters. It belongs to the old partners because they worked for and earned it before reconstitution. Therefore, it is transferred to the old partners in their old profit-sharing ratio. The sacrificing ratio is used mainly for goodwill adjustment when an old partner gives up part of his share for the new partner; it is not the normal basis for distributing an already accumulated reserve. Option A is correct. Option B is wrong because the sacrificing ratio can be calculated when needed; it is not the reason accumulated profit is distributed differently. Option C is wrong because the new partner did not earn the pre-admission profit. Option D is wrong because accumulated profit is not a cash expense; it is a past profit represented in the accounts. Memory cue: pre-admission profit follows the old ratio; goodwill compensation follows the sacrificing ratio.