S1: The sacrificing ratio is used during the admission of a new partner. S2: The gaining ratio is used during the retirement of a partner. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: The sacrificing ratio is used during the admission of a new partner. S2: The gaining ratio is used during the retirement of a partner. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. Both S1 and S2
D. S1 only
Answer: Option C
Solution (By JKSSB Mock Tests)
The sacrificing ratio determines how much share existing partners give up to the new partner. The gaining ratio determines how much share continuing partners acquire from the retiring partner. Both are correct.
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