P1 C4 RECUSTRUCTION OF PARTNERSHIP — Elements of Account STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP1 C4 RECUSTRUCTION OF PARTNERSHIP1 Mark
Question
What is sacrifice ratio?
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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.
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