Question : Choose which of the following statements is correct in relation with sacrifice ratio.
Option 1: Sacrificing Ratio is the ratios in which one or more partners of the firm forego, i.e., sacrifice their profit share(s) in favor of one or more partners of the firm.
Option 2: Sacrificed Profit Share = Old Profit Share - New Profit Share
Option 3: Both 1 and 2
Option 4: All of the above
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Statement A defines the sacrificing ratio as the ratio in which partners sacrifice their profit shares. Statement B provides the formula to calculate the sacrificed profit share, which is the difference between the old and new profit shares of a partner. Hence, the correct option is 3.
Question : Choose which of the following statements is correct in relation with gaining ratio.
Question : Ali and Bali were partners in a firm sharing profit or loss in the ratio of 2:1. With effect from Jan. 1, 2019 they agreed to share profit or loss in the ratio of 3:2. Due to change in profit-loss sharing ratio, Bali’s gain or sacrifice will be:
Question : Which of the following statements is false?
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