Commerce Exam > Commerce Questions > How sacrificing ratio is differ from gaining ...
Start Learning for Free
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculation
- a)It is calculated by taking difference between gaining and new ratio
- b)It is calculated by taking difference between new and old ratio
- c)It is calculated by taking difference between old and new ratio
- d)It is calculated by taking difference between old and gaining ratio
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
How sacrificing ratio is differ from gaining ratio on the basis of mod...
Difference between Sacrificing Ratio and Gaining Ratio
Sacrificing ratio and gaining ratio are two types of ratios that are used in partnership accounting. They are used to calculate the changes in the ownership structure of a partnership due to the admission, retirement or death of a partner.
Sacrificing Ratio
The sacrificing ratio is the ratio in which the old partners sacrifice their share of profits to the incoming partner. It represents the ratio in which the old partners agree to give up their share of profits to the new partner. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio.
Formula: Sacrificing Ratio = Old Ratio - New Ratio
Gaining Ratio
The gaining ratio is the ratio in which the incoming partner gains the share of profits from the old partners. It represents the ratio in which the new partner is entitled to share the profits of the partnership. The gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Formula: Gaining Ratio = New Ratio - Old Ratio
Mode of Calculation
The main difference between the sacrificing ratio and the gaining ratio is the mode of calculation. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio, while the gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Conclusion
In conclusion, the sacrificing ratio and the gaining ratio are two important ratios in partnership accounting. The sacrificing ratio represents the ratio in which the old partners sacrifice their share of profits to the incoming partner, while the gaining ratio represents the ratio in which the incoming partner gains the share of profits from the old partners. The main difference between the two ratios is the mode of calculation. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio, while the gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Sacrificing ratio and gaining ratio are two types of ratios that are used in partnership accounting. They are used to calculate the changes in the ownership structure of a partnership due to the admission, retirement or death of a partner.
Sacrificing Ratio
The sacrificing ratio is the ratio in which the old partners sacrifice their share of profits to the incoming partner. It represents the ratio in which the old partners agree to give up their share of profits to the new partner. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio.
Formula: Sacrificing Ratio = Old Ratio - New Ratio
Gaining Ratio
The gaining ratio is the ratio in which the incoming partner gains the share of profits from the old partners. It represents the ratio in which the new partner is entitled to share the profits of the partnership. The gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Formula: Gaining Ratio = New Ratio - Old Ratio
Mode of Calculation
The main difference between the sacrificing ratio and the gaining ratio is the mode of calculation. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio, while the gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Conclusion
In conclusion, the sacrificing ratio and the gaining ratio are two important ratios in partnership accounting. The sacrificing ratio represents the ratio in which the old partners sacrifice their share of profits to the incoming partner, while the gaining ratio represents the ratio in which the incoming partner gains the share of profits from the old partners. The main difference between the two ratios is the mode of calculation. The sacrificing ratio is calculated by taking the difference between the old ratio and the new ratio, while the gaining ratio is calculated by taking the difference between the new ratio and the old ratio.
Free Test
FREE
| Start Free Test |
Community Answer
How sacrificing ratio is differ from gaining ratio on the basis of mod...
(1)Sacrificing Ratio....The ratio in which the existing partners agree to sacrifice their share of profits in favour of the INCOMING PARTNER is called the sacrificing ratio. ... Then, the existing partner's new ratiois calculated by dividing the remaining share of the profit in their existing ratio.(Old PSR-New PSR)(2)Gaining Ratio. ... The ratio, in which the continuing partners acquired the share of RETIRING PARTNER, is called as gaining ratio. Note: When the ratio among the continuing partners remains unchanged, the gaining ratio will be equal to the new ratio.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer?
Question Description
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer?.
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer?.
Solutions for How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice How sacrificing ratio is differ from gaining ratio on the basis of mode of calculationa)It is calculated by taking difference between gaining and new ratiob)It is calculated by taking difference between new and old ratioc)It is calculated by taking difference between old and new ratiod)It is calculated by taking difference between old and gaining ratioCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup