Question
What is sacrifice ratio?

Answer

When there is a change in the ratio of profit and loss sharing of existing partners, a portion of profit of certain partners is reduced. This reduced share of profit of a partner is known as 'Sacrifice Ratio'.
Sacrifice ratio of a partner = Old profit and loss ratio of a partner New profit and loss ratio of a partner.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free