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What is the difference between gaining and sacrifising ratio?
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What is the difference between gaining and sacrifising ratio?
Gaining ratio and sacrificing ratio is the result of change in the profit sharing ratio. (a)Meaning:Gaining ratio refers to that ratio in which the the new partner including some old partners will purchase a part share of the profit from the old partners.(b)calculation:old share -new share=(-)if answer come in negative then it means the partner has gained. Sacrificing ratio refers to that ratio in which the old partner will sacrifices a part share of his profit to give to the new partner. =old share -New share.
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What is the difference between gaining and sacrifising ratio?
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