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
Answer (1)
23rd Jan, 2024
Correct Answer: Old ratio – New ratio
Solution : Answer = Old ratio – New ratio
Sacrificing Ratio is the difference between the old partnership ratio and the new partnership ratio when a partner retires or a new partner is admitted. It's calculated by subtracting the new ratio from the old ratio to determine the extent of sacrifice made by the existing partners.
Hence, the correct option is 1.
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