Question:
What is the formula for calculating Sacrifice Ratio?
What is the formula for calculating Sacrifice Ratio?
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Sacrifice Ratio is used only at the time of admission of a partner.
Updated On: Feb 16, 2026
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Solution and Explanation
Sacrifice Ratio is calculated at the time of admission of a new partner.
It shows the ratio in which the old partners give up their share of profit.
\[
\text{Sacrifice Ratio} = \text{Old Share} - \text{New Share}
\]
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