Distinguish between sacrificing ratio and gaining ratio.

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Q. Distinguish between sacrificing ratio and gaining ratio.

Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2022Subjective· 3mImportance★★★★★

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Sacrificing ratio (Old − New) is used on admission when old partners give up share; gaining ratio (New − Old) is used on retirement/death when continuing partners acquire the outgoing partner's share.

Distinction between Sacrificing Ratio and Gaining Ratio:

Basis	Sacrificing Ratio	Gaining Ratio
Meaning	Ratio in which old partners surrender (sacrifice) part of their share in favour of the new partner	Ratio in which continuing partners acquire (gain) the share of the retiring/deceased partner
When calculated	At the time of admission of a partner	At the time of retirement or death of a partner
Formula	Old ratio − New ratio	New ratio − Old ratio
Purpose	To credit the new partner's goodwill to the sacrificing partners	To charge the continuing partners for the goodwill given to the outgoing partner

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called :$
(a) Sacrificing ratio
(b) Gaining ratio
(c) Capital ratio
(d) None of these
›Reveal solutionSolution
Old ratio > new ratio → the excess is the sacrificing ratio. Option (a).

When a new partner is admitted, old partners usually give up part of their share in his favour.

Sacrificing ratio = Old share − New share (calculated when the old share is greater than the new share).

Gaining ratio = New share − Old share (used on retirement/death, when new share is greater).

Capital ratio is the ratio of partners' capitals, which is different. …
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CBSE 2024Set MARCH1 markMCQ
$Q. James and Kamal are sharing profits and losses in the ratio of 5 : 3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the Sacrificing ratio.$
(a) 5 : 3
(b) 1 : 3
(c) 3 : 5
(d) 3 : 1
›Reveal solutionSolution

With no special terms, old partners sacrifice in their old ratio, so sacrificing ratio = old ratio = 5 : 3.

In the TN HSC Class-12 Accountancy syllabus (Admission of a Partner), the sacrificing ratio is the ratio in which old partners give up part of their share in favour of the new partner: Sacrificing ratio = Old ratio − New ratio.

Given: James : Kamal = 5 : 3; Sunil admitted for 1/5 share, with nothing said about how the old partners give it up.

…

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CBSE 2020Set MARCH1 markMCQ
$Q. If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called :$
(a) Solvency ratio
(b) Capital ratio
(c) Sacrificing ratio
(d) Gaining ratio
›Reveal solutionSolution

Old share minus new share (when old is greater) = Sacrificing ratio — option (c).

Sacrificing ratio = Old profit-sharing ratio − New profit-sharing ratio. It is calculated when a new partner is admitted, because existing partners surrender a part of their share to the incoming partner. A positive difference (old > new) means the partner has sacrificed that share.

…

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Q.Distinguish between sacrificing ratio and gaining ratio.

Concept understanding — Sacrificing Ratio

Q.Distinguish between sacrificing ratio and gaining ratio.

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