Sacrificing ratio is the ratio in which the partners sacrifice their share on change in Profit Sharing Ratio.

(Normally calculated in case of admission).

Sacrificing ratio = Old Profit sharing ratio - New Profit sharing ratio

or

[Sacrifice=old share - new share]

It is very interesting to note that in the above case, if the answer is in negative, the result is Gain.

On admission of a partner

It is important that it is not necessary that all the old partners sacrifice; one or some partners can gain also on admission of a new partner.

The condition is that the total sacrifice should be equal to the total of gain and the share of the new partner.

Gaining Ratio