Q.Rohit and Mohit are partners in a firm sharing profits in the ratio of 5:3. They admit Bijoy as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. Calculate the sacrificing ratio of Rohit and Mohit.

Showing the 12 most recent of 78 on this concept.

1. CBSE 2026Set MARCH1 mark
   Q.Old Ratio – New Ratio = __________ Ratio.

   ›Reveal solutionSolution

   Old Ratio - New Ratio = Sacrificing Ratio.

   On admission of a partner, the existing partners surrender a portion of their profit share in favour of the incoming partner. The proportion in which they surrender is the sacrificing ratio, calculated as the difference between each old partner's old share and new share.

   ✓Final answer

   Old Ratio - New Ratio = SACRIFICING RATIO.

   (In contrast, at retirement/death, New Ratio - Old Ratio = Gaining Ratio.)

2. CBSE 2026Set ANNUAL1 markMCQ
   Q.Consider the following statements: Statement (I): Sacrificing Ratio = Old Profit and Loss sharing ratio – New Profit and Loss sharing ratio. Statement (II): Super profit = Average profits – Normal profits. Choose the correct answer from the following options: A) Only statement (I) is wrong B) Only statement (II) is correct C) Statement (I) is wrong and statement (II) is correct D) Both statements (I) and (II) are correct

   ›Reveal solutionSolution

   Both definitions are standard and correct, so option (D) applies.

   Statement (I): Sacrificing Ratio = Old profit-sharing ratio - New profit-sharing ratio. This is the correct formula; it measures the share old partners give up to the incoming/gaining partner.

   Statement (II): Super Profit = Average Profit - Normal Profit, where Normal Profit = Capital Employed x Normal Rate of Return. This is the correct definition used in the super-profit method of goodwill valuation.

   Since both statements are correct, options (A), (B) and (C) are ruled out.

   ✓Final answer

   Both statements (I) and (II) are correct — option (D).

3. CBSE 2026Set ANNUAL1 markMCQ
   Q.If Nisha and Komal are sharing profits in the ratio of 4 : 3. They decided to distribute profits equally in future. The sacrifice of Nisha will be A) 1/14 B) 4/14 C) 4/7 D) 3/7

   ›Reveal solutionSolution

   Nisha's sacrifice on moving from a 4:3 ratio to an equal ratio is 1/14 — option (A).

   Old ratio of Nisha and Komal = 4 : 3, so Nisha's old share = 4/7.

   New ratio = equal = 1 : 1, so Nisha's new share = 1/2.

   Sacrifice = Old share - New share

   = 4/7 - 1/2

   = 8/14 - 7/14

   = 1/14

   (Komal correspondingly gains 1/14, since 3/7 to 1/2 = 7/14 - 6/14 = 1/14 gain.)

   ✓Final answer

   Nisha's sacrifice = 1/14 — option (A).

4. CBSE 2026Set ANNUAL1 mark
   Q.Mahaveer and Jitendra are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Vaibhav for 1/5th share in profit, which he received from Jitendra. Calculate the sacrificing ratio.

   ›Reveal solutionSolution

   Only Jitendra sacrifices his 1/5th share, so the sacrificing ratio is entirely Jitendra's (Mahaveer nil).

   Mahaveer and Jitendra share profits 4 : 3. Vaibhav is admitted for a 1/5th share, which he takes wholly from Jitendra.

   • Mahaveer's sacrifice = 0 (his share is unchanged).
   • Jitendra's sacrifice = 1/5 (he alone gives up the share).

   Since only one partner sacrifices, the sacrificing ratio is simply Jitendra = 1/5. Expressed as a ratio, Mahaveer : Jitendra = 0 : 1.

   ✓Final answer

   The sacrificing ratio is Mahaveer : Jitendra = 0 : 1 — Jitendra alone sacrifices 1/5th of the profit.

5. CBSE 2026Set ANNUAL1 mark
   Q.Fill in the blank: Sacrificing ratio is always ________ to gaining ratio.

   ›Reveal solutionSolution

   Answer: Opposite / reverse.

   Sacrificing ratio = Old ratio - New ratio (share given up), while gaining ratio = New ratio - Old ratio (share acquired). They are computed in opposite directions, so a sacrificing ratio is always the opposite (reverse) of a gaining ratio. A partner who sacrifices is not gaining and vice versa.

   ✓Final answer

   Opposite (reverse) to the gaining ratio.

6. CBSE 2026Set ANNUAL1 mark
   Q.Answer in one word/sentence: The amount of goodwill brought by new partner is distributed to old partners in which ratio?

   ›Reveal solutionSolution

   Answer: Sacrificing ratio.

   The premium (goodwill) brought in by a new partner compensates the old partners for the share of profit they give up, so it is distributed among the old partners in their sacrificing ratio.

   ✓Final answer

   In the sacrificing ratio.

7. CBSE 2026Set ANNUAL1 markMCQ
   Q.Case study: Pawan and Ritesh are partners in Vision Tech Solutions, a partnership business sharing profit-loss in the ratio of 3:2. Capital invested by Pawan was ₹1,00,000 and by Ritesh ₹1,20,000 in the business. Their business involves developing software and providing related services according to market demand. Considering the potential for increased demand in the future, they plan to expand their business. To expand their business, they decide to bring in Sundar, a software investor, as a new partner to provide the necessary additional capital. Sundar contributed ₹80,000 as his capital. Pawan and Ritesh surrender 1/2 of their respective profit shares in favor of Sundar. Upon Sundar's admission, the firm's goodwill is to be valued at 2 years' purchase of the average profits of the last three years. The profits for the last three years were: I year ₹10,000 (loss); II year ₹40,000; III year ₹60,000. Sundar did not bring his share of goodwill in cash, and goodwill of ₹30,000 already existed in the firm's books. Based on the above information, answer the following question: What will be the sacrificing ratio of Pawan and Ritesh?

   (a) 1:1

   (b) 3:2

   (c) 2:1

   (d) 2:3

   (a) 1:1

   (b) 3:2

   (c) 2:1

   (d) 2:3

   ›Reveal solutionSolution

   Sacrificing ratio of Pawan and Ritesh = 3:2.

   Pawan and Ritesh share profit-loss in the ratio 3:2, so Pawan's share = 3/5 and Ritesh's share = 2/5. Each of them surrenders exactly 1/2 of their OWN respective share in favour of Sundar:

   Pawan's sacrifice = 1/2 × 3/5 = 3/10

   Ritesh's sacrifice = 1/2 × 2/5 = 2/10 (= 1/5)

   Sacrificing Ratio = Pawan's sacrifice : Ritesh's sacrifice

   = 3/10 : 2/10

   = 3 : 2

   This matches the firm's existing old profit-sharing ratio exactly, because both partners sacrificed the SAME proportion (half) of their own respective shares — so the ratio between their sacrifices stays the same as their old ratio.

   ✓Final answer

   The sacrificing ratio of Pawan and Ritesh is 3:2.

8. CBSE 2026Set ANNUAL1 markMCQ
   Q.Case study (same as above — Pawan and Ritesh are partners in Vision Tech Solutions sharing profit-loss 3:2; capitals ₹1,00,000 and ₹1,20,000; they admit Sundar as a new partner who contributes ₹80,000 capital, with Pawan and Ritesh each surrendering 1/2 of their respective profit shares in favor of Sundar). Based on the above information, answer the following question: What will be the new profit sharing ratio of Pawan, Ritesh and Sundar?

   (a) 3:2:5

   (b) 3:2:1

   (c) 1:1:1

   (d) 5:2:3

   (a) 3:2:5

   (b) 3:2:1

   (c) 1:1:1

   (d) 5:2:3

   ›Reveal solutionSolution

   New profit-sharing ratio of Pawan, Ritesh and Sundar = 3:2:5.

   Step 1 — Old shares

   Pawan = 3/5, Ritesh = 2/5

   Step 2 — Sacrifice by each (from Q29)

   Pawan sacrifices 3/10, Ritesh sacrifices 2/10

   Step 3 — New shares of Pawan and Ritesh

   Pawan's new share = 3/5 − 3/10 = 6/10 − 3/10 = 3/10

   Ritesh's new share = 2/5 − 2/10 = 4/10 − 2/10 = 2/10

   Step 4 — Sundar's share

   Sundar receives exactly what both partners sacrificed:

   Sundar's share = 3/10 + 2/10 = 5/10

   Step 5 — New Ratio

   Pawan : Ritesh : Sundar = 3/10 : 2/10 : 5/10 = 3 : 2 : 5

   (Check: 3+2+5 = 10/10 = 1, the whole firm — confirms the ratio is correctly computed.)

   ✓Final answer

   The new profit-sharing ratio of Pawan, Ritesh and Sundar is 3 : 2 : 5.

9. CBSE 2026Set ANNUAL1 mark
   Q.How can the gaining partner compensate the sacrificing partner in case of change in profit sharing ratio?

   ›Reveal solutionSolution

   The gaining partner compensates the sacrificing partner by paying him the value of goodwill corresponding to the share he has gained, usually through an adjustment in the partners' capital accounts.

   When partners decide to change their profit-sharing ratio, some partners' shares increase (gaining partners) while others' shares decrease (sacrificing partners). Since goodwill represents the value of the firm's reputation and future profit-earning capacity built up by all partners together, it is only fair that a partner whose share of future profits increases (the gaining partner) compensates the partner whose share decreases (the sacrificing partner).

   The compensation is calculated as:

   Compensation = Gaining Partner's Gain in Share × Firm's Goodwill

   This amount is adjusted by passing a journal entry:

   Gaining Partner's Capital A/c Dr.

   To Sacrificing Partner's Capital A/c

   In this way, the gaining partner's capital account is debited, and the sacrificing partner's capital account is credited with his share of goodwill, without the need to bring in or withdraw cash, and without raising a Goodwill account in the books.

   ✓Final answer

   The gaining partner's Capital Account is debited and the sacrificing partner's Capital Account is credited with the value of goodwill equal to (gaining share × firm's goodwill).

10. CBSE 2026Set ANNUAL1 markMCQ
    Q.P and Q are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit R, a new partner for 1/5th share in profit. What is the sacrificing ratio of P and Q?

    (a) 3 : 1

    (b) 2 : 1

    (c) 3 : 2

    (d) 1 : 1

    ›Reveal solutionSolution

    With no new ratio specified, P and Q are assumed to sacrifice in their existing old ratio of 3:2 to make room for R's 1/5th share.

    Sacrificing Ratio = Old Share − New Share, for each existing partner. It tells us in what proportion the old partners give up their share of profit to accommodate the incoming partner.

    Here, P and Q share profits in the ratio 3:2, and they admit R for a 1/5th share. The question does not state that P and Q will share the remaining profit in any ratio different from their old one. Whenever the new partner's share is simply carved out and the old partners' mutual ratio is left unchanged, the sacrificing ratio equals the old profit-sharing ratio itself — because both partners give up a share of their own profit proportionate to what they used to hold.

    Formal check: Old ratio P : Q = 3 : 5 total parts combined = 3/5 : 2/5. If R takes 1/5 and P, Q continue to share the remaining 4/5 in the same old proportion:

    • New share of P = 4/5 × 3/5 = 12/25

    • New share of Q = 4/5 × 2/5 = 8/25

    • Sacrifice of P = 3/5 − 12/25 = 15/25 − 12/25 = 3/25

    • Sacrifice of Q = 2/5 − 8/25 = 10/25 − 8/25 = 2/25

    • Sacrificing ratio P : Q = 3 : 2 — confirming the old ratio itself.

    ✓Final answer

    Option (c) "3 : 2" — since no new ratio between P and Q is specified, their sacrificing ratio to admit R remains their old ratio, 3:2.

11. CBSE 2026Set ANNUAL1 mark
    Q.State one point of difference between Sacrificing Ratio and Gaining Ratio.

    ›Reveal solutionSolution

    Sacrificing Ratio belongs to admission (old partners give up share); Gaining Ratio belongs to retirement/death (continuing partners gain share) — the two ratios serve opposite purposes at opposite events.

    Both ratios compare a partner's old share of profit with their new share after reconstitution, but they are used in entirely different situations and for opposite reasons:

    Basis	Sacrificing Ratio	Gaining Ratio
    When computed	At the time of admission of a new partner	At the time of retirement or death of a partner
    Formula	Old Share − New Share	New Share − Old Share
    Purpose	To find how much of their share the existing partners give up to accommodate the new partner, so that the new partner's goodwill premium can be fairly distributed among them	To find how much of the retiring/deceased partner's share is picked up by each continuing partner, so that the continuing partners can compensate for the retiring/deceased partner's share of goodwill
    Direction of profit	Old partners' share decreases	Continuing partners' share increases

    In short: Sacrificing Ratio measures a reduction in share at admission; Gaining Ratio measures an increase in share at retirement/death. (Any one of these contrasts is sufficient as "one point of difference.")

    ✓Final answer

    Sacrificing Ratio is calculated at the admission of a new partner to measure how much old partners give up, while Gaining Ratio is calculated at the retirement/death of a partner to measure how much the continuing partners gain.

12. CBSE 2025Set MARCH1 markMCQ
    Q.When only old profit-loss sharing ratio is given; sacrificing ratio of old partners = ______.

    (a) equal

    (b) old ratio

    (c) old share - new share

    (d) cannot be calculated

    ›Reveal solutionSolution

    If only the old profit-sharing ratio is given (new ratio not specified), the sacrificing ratio equals the old ratio. Correct option: (b).

    In GSEB Class-12 Commerce Accountancy (admission of a partner):

    • Sacrificing ratio = Old share − New share, when the new ratio is given.

    • But when only the old ratio is available and the new partner's share is carved out proportionately, the old partners sacrifice in their old ratio.

    • Hence the sacrificing ratio is taken as the old ratio.

    ✓Final answer

    (b) old ratio.