Question : The sacrifice ratio is calculated using the following formula -
Option 1: New share – Old share
Option 2: Old Ratio – Gaining Ratio
Option 3: Gaining Ratio – Old Ratio
Option 4: Old share – New share
Correct Answer: Old share – New share
Solution : Sacrificing Ratio = Old Ratio − New Ratio
Calculating this ratio is crucial because the new partner must make up for the previous partners' loss of their profit-sharing interest.
Hence the correct answer is option 4.
Question : Gaining ratio =
Option 1: New ratio - Sacrifice ratio
Option 2: Old ratio – Sacrifice ratio
Option 3: New ratio – Old ratio
Option 4: Old ratio – New ratio
Question : Choose which of the following statements is correct in respect of Sacrificing Ratio:
Option 1: Old ratio – New ratio
Option 2: New Ratio – Old Ratio
Option 3: Old Ratio – Gaining Ratio
Option 4: Gaining Ratio – Old Ratio
Question : Which of the following statements is false?
Option 1: New Profit-share = Existing (Old) Profit-share + Profit Share taken of Deceased Partner
Option 2: Gaining ratio = new ratio – old ratio
Option 3: New ratio = old ratio + sacrificing ratio
Option 4: None of the above
Question : ‘Gaining Ratio’ means -
Option 1: Old Ratio – New Ratio
Option 2: Old Ratio – Sacrificing Ratio
Option 3: New Ratio – Old Ratio
Option 4: New Ratio – Sacrificing Ratio
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