Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
If nothing otherwise mentioned ,on admission of a new partner, the sacrificing ratio is same as which ratio?
Options:
Old ratio
New ratio
Gaining ratio
Any of the above
Correct Answer:
Old ratio
Explanation:
Sacrificing Ratio is the ratio in which the partners give up their share of profits for the new partner. If a new ratio is given, Sacrificing ratio= Old Ratio