Sacrifice ratio is a term used in accounting and finance to determine the amount of premium that needs to be paid to acquire a company's goodwill. It is specifically used in the context of valuing goodwill when two or more partners decide to form a partnership or when an existing partner decides to withdraw or retire from the partnership.

The correct answer is option 'D' because the sacrifice ratio is used to calculate the premium for goodwill. Goodwill is an intangible asset that represents the reputation, customer base, brand value, and other non-physical assets of a business. When a new partner joins a partnership or an existing partner retires, the remaining partners may decide to pay a premium to acquire the retiring partner's share of the goodwill. The sacrifice ratio helps determine the amount of premium to be paid.

Here is a detailed explanation of the options:

a) Distribution of Reserve: Distribution of reserve refers to the allocation of profits or reserves among the partners of a partnership. It is not related to the sacrifice ratio.

b) Revaluation profit: Revaluation profit refers to the increase in the value of assets or decrease in the value of liabilities of a partnership due to revaluation. It is not directly related to the sacrifice ratio.

c) Revaluation of loss: Revaluation of loss refers to the adjustment of the value of assets or liabilities in the case of losses incurred by a partnership. It is not directly related to the sacrifice ratio.

d) Premium for goodwill: This is the correct answer. The sacrifice ratio is used to calculate the premium for goodwill. It helps in determining the amount to be paid by the remaining partners to acquire the retiring partner's share of the goodwill.

In conclusion, the sacrifice ratio is used to calculate the premium for goodwill when a partner retires or a new partner joins a partnership. It is not used for the distribution of reserve, revaluation profit, or revaluation of loss.