Asked Nov 24, 2019

Define sacrificing ratio.


Expert Answer

Step 1

Definition of Sacrificing Ratio:

Sacrificing ratio is the ratio where the old partner give their consent to forego their share of gains into the new partner. The Sacrificing ratio is computed during the time of addition or admission of a new associate partner. It is the portion in which old partner forego their share to the new associate.

Step 2

Sacrificing ratio is calculated by follow...


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Sacrificing Ratio = Old share of Profit - New share of Profit


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