When there is a change in the ratio of profit and loss sharing of existing partners, a portion of profit of certain partners is reduced. This reduced share of profit of a partner is known as ‘Sacrifice Ratio’.
(i) Sacrificing ratio depends on the changes in the old profit and loss sharing ratio of the partners.
(ii) Sacrificing ratio is a difference between the old share and the new share of profit of one or more partners.
(iii) Sacrificing ratio of a partner = Old share of profit – New share of profit
Illustration : Jyoti, Vina and Kiran are the partners of a firm sharing profit and loss equally. They decided of change their profit and loss ratio to 1 : 2 :
