Sacrificing ratio is differ from new profit sharing ratioa)It is related to old partnersb)It is related to all partnersc)It is related to new partnersd)It is related to all partners (including new)Correct answer is option 'A'. Can you explain this answer?

Question

Answer

I think It is related to all partners including new because if we add sacrificing ratio then we will get new ratio of new partner means new partner gets his share by sacrifice of others

Answer

Yes as new p.s.r will be of both newly admitted partner n old ones whereas s.r. is only associated with old ones

Answer

Ya sure. sacrificing Ratio,: It means the ratio in which the old partners sacrifice after the admission of new partners. e. g. lets assume that we both are eating 3 apples 1½ each. but while we were going to eat the apples over one friend arrived and he asked for his share, now we will share the apple as 1 each. Hence it is obvious that we (old partners) are sacrifising our apples (here ½ apple each.) . Hence It is generally considered that in the admission of new partner old partners use to sacrifise. Accounting e. g. : let assume you and me are partners and sharing ratio between us is equall (1:1) ,now assume that an other paryner has joined us, named z and it is decided to share the further profit of the firm qually between us three. (1:1:1) now the sacrifising ratio between us (old partners) will be; my : ½-⅓=1/6 your : ½-⅓= 1/6

Answer

Sacrificing ratio is calculated at the time of admission of the new partner.

The new partner will definitely gain something and old partners will definitely sacrifice something for the new partner.

Hence a ) is right answer.

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