Question

Distinguish between sacrificing ratio and gaining ratio of partners?

Answer 1

Difference Between Gaining Ratio and Sacrifice Ratio:

Basis of Difference	Sacrifice Ratio	Gaining Ratio
Meaning	It is the ratio in which old partners have agreed to sacrifice their share in favor of the new partner.	It is the ratio which the continuing partners acquire from the outgoing partner share.
Time of Computation	It is calculated when a new partner is admitted.	It is calculated when a partner retires or dies.
Formula for Ascertainment	Sacrifice Ratio = Old Ratio – New Ratio	Gaining Ratio = New Ratio – Old Ratio
Objective	This ratio is computed to compensate old partners by new partner in the form of goodwill.	This ratio is computed to compensate outgoing partner by continuing partners in the form of goodwill.