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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

  1. A
    New Profit Sharing Ratio
  2. B
    Gaining Ratio
  3. C
    Sacrificing Ratio
  4. D
    Old Ratio

Solution & Step-by-step Explanation

The ratio in which the existing (old) partners surrender or give up a part of their profit share in favor of a newly admitted incoming partner is known as the Sacrificing Ratio. It is calculated as:

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The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:
A
New Profit Sharing Ratio
B
Gaining Ratio
C
Sacrificing Ratio
D
Old Ratio

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