Which of the following ratios are calculated at the time of admission of a new partner?
A) New profit-sharing ratio
B) Capitalization Ratio
C) Sacrificing Ratio
D) Liquidity Ratio

A & C

The correct answer is option 2- A & C.

At the time of admission of a new partner in the partnership firm, the sacrificing ratio and new profit sharing ratio is calculated. The sacrificing ratio is calculated to know the sacrifice made by the old partners so that new partner can compensate the old partner. Admission of a new partner leads to the reconstitution of the firm, so a new ratio is calculated in which all partners including the new partner will share future profits and losses.