Question : Sacrificing ratio is calculated because:
Option 1: Revaluation Account profit can be credited to sacrificing partners
Option 2: Goodwill brought in by the incoming partner can be credited to the new partner
Option 3: Goodwill brought in by the incoming partner can be credited to the sacrificing partners
Option 4: Both (1) and (3)
Correct Answer: Goodwill brought in by the incoming partner can be credited to the sacrificing partners
Solution : Answer = Goodwill brought in by the incoming partner can be credited to the sacrificing partners
The sacrificing ratio is calculated to determine how the goodwill brought in by the incoming partner will be shared among the existing partners. It ensures that the sacrificing partners receive their appropriate share of the goodwill brought in by the new partner, thereby maintaining equity in the partnership.
Hence, the correct option is 3.
