Why is sacrifice ratio calculated? Post category:Accountancy Reading time:1 mins read SOLUTION Sacrifice ratio is calculated because the premium for goodwill brought in by the incoming partner is divided among old partners in their sacrificing ratio. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostState the ratio in which the old partners share the amount of cash brought in by the new partner as premium for goodwill. Next PostUnless given otherwise, what will be the ratio of sacrifice of the old partner in the case of admission of a new partner? (C.B.S.E. 2019 Chennai) You Might Also Like What is Return on Investment Ratio? October 3, 2022 P and Q are partners sharing profits in the ratio of 3 : 2. They admit R into partnership who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New Profit-sharing Ratio and Sacrificing Ratio. August 1, 2022 State any two reasons for the preparation of ‘Revaluation Account’ in case of admission of a Partner? (CBSE Sample Paper 2018) October 8, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
P and Q are partners sharing profits in the ratio of 3 : 2. They admit R into partnership who acquires 1/5th of his share from P and 4/25th share from Q. Calculate New Profit-sharing Ratio and Sacrificing Ratio. August 1, 2022
State any two reasons for the preparation of ‘Revaluation Account’ in case of admission of a Partner? (CBSE Sample Paper 2018) October 8, 2022