The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio. Identify the correct statements regarding sacrificing ratio.
(A) Sacrifice by a Partner = New Share of Profit – Old Share of Profit
(B) This ratio is calculated for all the partners i.e. old and incoming
(C) The ratio is normally clearly given as agreed among the partners, which could be the old ratio, equal sacrifice, or a specified ratio
(D) Sacrifice by a Partner = Old Share of Profit – New Share of Profit
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (C) and (D) only
The sacrificing ratio concerns only the old partners, because only they give up a share for the incoming partner.
(A) Sacrifice by a Partner = New Share of Profit – Old Share of Profit Incorrect. The formula is turned round; a partner who sacrifices has a smaller new share, so the sacrifice is old share minus new share.
(B) This ratio is calculated for all the partners i.e. old and incoming Incorrect. The incoming partner gives up nothing, so the ratio is worked out for the old partners only.
(C) The ratio is normally clearly given as agreed among the partners, which could be the old ratio, equal sacrifice, or a specified ratio Correct. It is usually part of the agreement on admission; it has to be calculated only when just the new ratio is given.
(D) Sacrifice by a Partner = Old Share of Profit – New Share of Profit Correct. This is how the sacrifice is worked out from the old and new ratios.
NCERT (2026-27 edition):
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