Difference between Sacrificing Ratio and New Profit Sharing Ratio class 12

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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)

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BasisSacrificing RatioNew Profit Sharing Ratio
MeaningIt 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 PartnersIt is related to the old partners only.It is related to all partners including the new partner
CalculationSacrificing Ratio = Old Profit Share – New Profit ShareNew Profit Sharing Ratio = Old Profit Share – Profit Share Sacrificed
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Anurag Pathak

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