Confused, What is the difference between Sacrificing Ratio and New Profit Sharing Ratio in class 12 CBSE, ISC and State Board.
Don’t worry, we have explained this topic in detail.
Sacrificing Ratio Vs new Profit Sharing Ratio (Differences and Comparison)
Let’s learn it
|Basis||Sacrificing Ratio||New Profit Sharing Ratio|
|Meaning||It is the ratio in which the old partners give their shares in profits to the new partner.||It is the ratio in which all partners including the incoming partner share the future profits and losses.|
|Related Partners||It is related to the old partners only.||It is related to all partners including the new partner|
|Calculation||Sacrificing Ratio = Old Profit Share – New Profit Share||New Profit Sharing Ratio = Old Profit Share – Profit Share Sacrificed|