Question : New Ratio =
Option 1: Old Ratio – Sacrificing Ratio
Option 2: Old Ratio – Gaining Ratio
Option 3: Both 1 and 2
Option 4: None of the above
Answer (1)
16th Jan, 2024
Correct Answer: Old Ratio – Sacrificing Ratio
Solution : Answer = Old Ratio – Sacrificing Ratio
When a new partner is admitted to a partnership firm, the sacrificing ratio is calculated by subtracting the old ratio from the new ratio. This helps determine the extent to which existing partners sacrifice their share in favour of the new partner.
Hence, the correct option is 1.
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