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partnership ratios

Open uri20170510 32134 9p7be3?1494421783 rashmi asked about 3 years ago

difference b/w sacrifice ratio and gain ratio.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 3 years ago

**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. Thanks

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