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Questions
What do you mean by 'sacrifice ratio'?
Solution
The ratio in which the new partner (who has joined a partnership firm) is given the share by the existing partners of the firm is called sacrificing ratio. So, it is the ratio in which the existing partners sacrifice their share of profit in favour of the new partner. Algebraically, it is expressed as:
Sacrifice ratio = Old ratio – New ratio
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|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capitals: |
|
Land and Building |
1,50,000 |
|
|
Atal: |
1,50,000 |
|
Machinery |
40,000 |
|
Madan: |
90,000 |
2,40,000 |
Patents |
5,000 |
|
Provision for bad debts |
1,200 |
Stock |
27,000 |
|
|
Creditors |
20,000 |
Debtors |
47,000 |
|
|
Workmen compensation Fund |
32,000 |
Cash |
4,200 |
|
|
|
|
Profit and Loss Account |
20,000 |
|
|
|
2,93,200 |
|
2,93,200 |
|
|
|
|
|||
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