{"id":1397,"date":"2019-06-21T17:17:04","date_gmt":"2019-06-21T17:17:04","guid":{"rendered":"https:\/\/commerceiets.com\/?p=1397"},"modified":"2019-06-21T17:17:04","modified_gmt":"2019-06-21T17:17:04","slug":"difference-b-w-gaining-sacrificing-ratio","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/difference-b-w-gaining-sacrificing-ratio\/","title":{"rendered":"DIFFERENCE B\/W GAINING &#038; SACRIFICING RATIO"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/difference-b-w-gaining-sacrificing-ratio\/#DIFFERENCE_BW_GAINING_SACRIFICING_RATIO\" title=\"DIFFERENCE B\/W GAINING &amp; SACRIFICING RATIO\">DIFFERENCE B\/W GAINING &amp; SACRIFICING RATIO<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/difference-b-w-gaining-sacrificing-ratio\/#SACRIFICING_RATIO\" title=\"SACRIFICING RATIO\">SACRIFICING RATIO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/difference-b-w-gaining-sacrificing-ratio\/#GAINING_RATIO\" title=\"GAINING RATIO\">GAINING RATIO<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DIFFERENCE_BW_GAINING_SACRIFICING_RATIO\"><\/span>DIFFERENCE B\/W GAINING &amp; SACRIFICING RATIO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before understanding the difference between Gaining &amp; Sacrificing Ratio, one must learn the meaning of both terms which is as follows:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SACRIFICING_RATIO\"><\/span><a href=\"https:\/\/commerceiets.com\/sacrificing-ratio\/\">SACRIFICING RATIO<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Sacrificing ratio is the ratio in which old or existing partners forego, i.e., sacrifice their share of profit in favor of the new or incoming partner. This share may be given or sacrificed to the new or incoming partner by all the old partners equally or by all or some of the partners in agreed ratio.<\/p>\n\n\n\n<p class=\"has-background has-very-light-gray-background-color\"><strong>SACRIFICING RATIO= OLD SHARE- NEW SHARE <\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GAINING_RATIO\"><\/span><a href=\"https:\/\/commerceiets.com\/gaining-ratio\/\">GAINING RATIO<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The ratio in which the continuing partners acquire the outgoing partner\u2019s share is called the gaining ratio. It is the ratio in which the remaining partners will pay the amount of goodwill to the retiring partner. This ratio is calculated by deducting old share in profits from the new share in profits. <\/p>\n\n\n\n<p class=\"has-background has-very-light-gray-background-color\"><strong>GAINING RATIO= NEW RATIO-OLD RATIO <\/strong><\/p>\n\n\n\n<p>The Difference between Gaining &amp; Sacrificing Ratio<\/p>\n\n\n\n<table class=\"wp-block-table has-subtle-light-gray-background-color has-background\"><tbody><tr><td>  <strong> BASIS OF DIFFERENCE   <\/strong><\/td><td><strong>   SACRIFICING RATIO   <\/strong><\/td><td><strong>   GAINING RATIO   <\/strong><\/td><\/tr><tr><td>   <strong>MEANING   <\/strong><\/td><td>\n  It is the ratio in which old partner surrender a part of their share\n  in the favour of new partner.\n  <\/td><td>\n  It is the ratio in which the remaining partners acquire the outgoing\n  partner\u2019s share.\n  <\/td><\/tr><tr><td><strong>   WHEN CALCULATED   <\/strong><\/td><td>\n  Sacrificing ratio is calculated at the time of the admission of the\n  partner.\n  <\/td><td>\n  Gaining ratio is calculated at the time of death or retirement of the\n  partner.\n  <\/td><\/tr><tr><td>   <strong>PURPOSE OF CALCULATION   <\/strong><\/td><td>\n  It is calculated to determine the amount of compensation to be paid\n  by the incoming partner to the sacrificing partner as premium for goodwill or\n  goodwill.\n  <\/td><td>\n  It is calculated to determine the amount of compensation to be paid\n  by each of the gaining partner to the outgoing partner as premium for\n  goodwill or goodwill.\n  <\/td><\/tr><tr><td>   <strong>CALCULATION   <\/strong><\/td><td>\n  Old Ratio- New Ratio\n  <\/td><td>\n  New Ratio- Old ratio\n  <\/td><\/tr><tr><td>   <strong>EFFECT   <\/strong><\/td><td>\n  Sacrifice ratio reduces the share of profit of old partner.\n  <\/td><td>\n  Gaining ratio increases the share of profit of continuing partners.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DIFFERENCE B\/W GAINING &amp; SACRIFICING RATIO Before understanding the difference between Gaining &amp; Sacrificing Ratio, one must learn the meaning of both terms which is as follows: SACRIFICING RATIO Sacrificing ratio is the ratio in which old or existing partners forego, i.e., sacrifice their share of profit in favor of the new or incoming partner&#8230;.<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/difference-b-w-gaining-sacrificing-ratio\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;DIFFERENCE B\/W GAINING &#038; SACRIFICING RATIO&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1405,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,21],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1397"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=1397"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/1397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/1405"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=1397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=1397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=1397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}