The formula for Calculating Sacrificing Ratio of a partner is:

The correct answer is Option (1) → Old Ratio - New Ratio

The sacrificing ratio is the ratio in which old partners give up their share in favour of the new partner. Each partner’s sacrifice = old share − new share.

Option (2) New Ratio - Old Ratio — Incorrect. This gives the gain of a partner, used for the gaining ratio.

Option (3) Old Ratio + New Ratio — Incorrect. Adding the two shares measures nothing; a sacrifice is a reduction.

Option (4) New Ratio + Gaining Ratio — Incorrect. This has no meaning in the calculation of sacrifice.