Sacrifice ratio

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Jnyanesh

Jnyanesh (Querist)
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10 March 2014 pls explain me sacrifice ratio wth eg

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 March 2014 assume there are 2 partners A and B, sharing profits in 4:2 ratio. now a new partner come and the new ratio is 3:2:1 (C:A:B).

Initially A had 4/6 share and B had 2/6 share.

now A has 2/6 and B has 1/6. So A sacrificed, 2/6 and B sacrificed 1/6. So the sacrifice ratio is 2:1