The ratio in which a partner surrenders his share of profit in favour of a partner is known as which ratio?

Sacrificing ratio

The correct answer is option 4- Sacrificing ratio.

Sacrificing ratio is nothing but the proportion in which old partners sacrifices their share in favour of new partner. Therefore, the surrender of share by old partner in certain ration is nothing but the sacrificing ratio. It is calculated by subtracting new ratio from the old ratio.

OTHER OPTIONS-

• Gaining ratio- In a partnership, the gaining ratio refers to the ratio in which the remaining partners acquire the share of outgoing partner's profit. It's calculated to distribute the profit or loss of the outgoing partner between the existing partners.

• New profit sharing ratio- This is the revised ratio in which profits and losses are shared among the partners of a business after any changes in the partnership agreement. It reflects the new distribution of profits among the partners.

• Capital ratio- This refers to the proportion of capital contributed by each partner in a partnership. It's calculated by dividing each partner's capital contribution by the total capital of the partnership.