Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
At what time Sacrificing ratio is ascertained by a partnership firm?
Options:
At the death of a partner
At the retirement of a partner
At the admission of a partner
None of these
Correct Answer:
At the admission of a partner
Explanation:
Sacrificing ratio is computed during the time of addition or admission of a new associate partner. It is the portion in which old partners forego their share to the new associate.