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What is the sacrificing ratio?
  • a)
    The ratio in which old partners share profits
  • b)
    The ratio in which old partners forego their share in favor of the new partner
  • c)
    The ratio in which new partners acquire their share
  • d)
    The ratio of capital brought in by the new partner
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the sacrificing ratio?a)The ratio in which old partners share ...
The sacrificing ratio is the ratio in which the old partners forego their share of future profits in favor of the new partner, usually based on the old profit-sharing ratio unless specified otherwise.
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What is the sacrificing ratio?a)The ratio in which old partners share profitsb)The ratio in which old partners forego their share in favor of the new partnerc)The ratio in which new partners acquire their shared)The ratio of capital brought in by the new partnerCorrect answer is option 'B'. Can you explain this answer?
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