What is sacrificing ratio?

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Question: What is sacrificing ratio?

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The sacrifice ratio is an economic ratio that measures the effect of rising and falling inflation on a country's total production and output. Sacrificing ratio is the ratio in which the old partners give their consent to forego their share of gains in kindness of the new partner. The meaning of sacrifice ratio in accounting can be explained as the proportion in which existing partners surrender their share of profit in favour of newly admitted. Sacrificing ratio refers to the ratio in which the old partners surrender their share of profit in favour of new partner/s. On admission of new partners, existing partners may require to sacrifice from their existing profits. Answer · Sacrificing ratio is nothing but the proportion in which old partners sacrifices their share in favour of new partner.

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Answered By:
Raj

Raj

Minneapolis, United States

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