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Question
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called ____________.
Options
Capital ratio
Sacrificing ratio
Gaining ratio
None of these
Solution
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called Sacrificing ratio.
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RELATED QUESTIONS
Match List I with List II and select the correct answer using the codes given below:
| List I | List II |
| (i) Sacrificing ratio | 1. Investment fluctuation fund |
| (ii) Old profit sharing ratio | 2. Accumulated profit |
| (iii) Revaluation Account | 3. Goodwill |
| (iv) Capital Account | 4. Unrecorded liability |
Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2 : 1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3 : 1 : 1. Find the sacrificing ratio between Balaji and Kamalesh.
Praveena and Dhanya are partners sharing profits in the ratio of 7 : 3. They admit Malini into the firm. The new ratio among Praveena, Dhanya and Malini are 5 : 2 : 3. Calculate the sacrificing ratio.
Raja and Ravi are partners, sharing profits in the ratio of 3 : 2. They admit Ram for 1/4 share of the profit. He takes 1/20 share from Raja and 4/20 from Ravi. Calculate the new profit sharing ratio and sacrificing ratio.
Vimala and Kamala are partners, sharing profits and losses in the ratio of 4 : 3. Vinitha enters into the partnership and she acquires 1/14 from Vimala and 1/14 from Kamala. Find out the new profit sharing ratio and sacrificing ratio.
Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.
Prema and Chandra share profits in the ratio of 5 : 3. Hema is admitted as a partner. Prema surrendered 1/8 of her share and Chandra surrendered 1/8 of her share in favour of Hema. Calculate the new profit sharing ratio and sacrificing ratio.
Karthik and Kannan are equal partners. They admit Kailash with 1/4 share of the profit. Kailash acquired his share from old partners in the ratio of 7 : 3. Calculate the new profit sharing ratio and sacrificing ratio.
Selvam and Senthil are partners sharing profit in the ratio of 2 : 3. Siva is admitted into the firm with 1/5 share of profit. Siva acquires equally from Selvam and Senthil. Calculate the new profit sharing ratio and sacrificing ratio.
Ambika, Dharani and Padma are partners in a firm sharing profits in the ratio of 5 : 3 : 2. They admit Ramya for 25% profit. Calculate the new profit sharing ratio and sacrificing ratio.
