rashmi
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difference b/w sacrifice ratio and gain ratio.
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lochan
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**DIFFERENCE BETWEEN SACRIFICE RATIO AND GAIN RATIO**
SACRIFICE RATIO-- It is the ratio in which old partners agree to sacrifice their share of profit in favour of new partners
GAIN RATIO-- It is the ratio in which continuing partner acquires the share of profit from outgoing partners.
SACRIFICE RATIO-- FORMULA IS OLD RATIO- NEW RATIO
GAIN RATIO-- NEW RATIO- OLD RATIO.
SACRIFICE RATIO-- it is calculated at the time of admission of new partner
GAIN RATIO-- It is calculated at the time of retirement or death of old partner.
SACRIFICE RATIO-- It reduces the profit share of existing partners.
GAIN RATIO-- it increases the profit ratio of the remaining partners.
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