{"id":45680,"date":"2024-04-15T22:01:27","date_gmt":"2024-04-15T22:01:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45680"},"modified":"2024-04-15T22:01:27","modified_gmt":"2024-04-15T22:01:27","slug":"sacrifice-ratio-is-used","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/sacrifice-ratio-is-used\/","title":{"rendered":"Sacrifice ratio is used"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a982f5faffba\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    on the death of a partner                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    on the retirement of a partner                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    on the dissolution of a firm                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    on the change in the profit sharing ratio                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. on the retirement of a partner<\/strong><\/p>\n<p>Sacrifice ratio is a term used in partnership accounting to describe the ratio in which the remaining partners share the retiring partner&#8217;s capital account balance. The sacrifice ratio is calculated by taking the difference between the retiring partner&#8217;s capital account balance and the amount that the retiring partner is paid, and then dividing that difference by the total capital account balance of the remaining partners.<\/p>\n<p>The sacrifice ratio is used to determine how much each of the remaining partners will contribute to the retiring partner&#8217;s capital account balance. The partner with the highest sacrifice ratio will contribute the most, and the partner with the lowest sacrifice ratio will contribute the least.<\/p>\n<p>Sacrifice ratio is used on the retirement of a partner because it is a fair way to distribute the retiring partner&#8217;s capital account balance among the remaining partners. The sacrifice ratio takes into account the amount that each partner has invested in the partnership, as well as the amount of profit that each partner has earned.<\/p>\n<p>Here are the brief explanations of each option:<\/p>\n<ul>\n<li><strong>A. on the death of a partner<\/strong><\/li>\n<\/ul>\n<p>On the death of a partner, the deceased partner&#8217;s capital account balance is usually paid to the deceased partner&#8217;s estate. The remaining partners do not have to contribute anything to the deceased partner&#8217;s capital account balance.<\/p>\n<ul>\n<li><strong>C. on the dissolution of a firm<\/strong><\/li>\n<\/ul>\n<p>On the dissolution of a firm, the assets of the firm are sold and the proceeds are distributed to <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> the <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> partners according to their capital account balances. The remaining partners do not have to contribute anything to the capital account balances of the partners who are withdrawing from the firm.<\/p>\n<ul>\n<li><strong>D. on the change in the profit sharing ratio<\/strong><\/li>\n<\/ul>\n<p>When the profit sharing ratio of a partnership changes, the partners must contribute to the capital account balances of the partners whose profit sharing ratios have decreased. The amount that each partner contributes is determined by the sacrifice ratio.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sacrifice ratio is used<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/sacrifice-ratio-is-used\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sacrifice ratio is used\" \/>\n<meta property=\"og:description\" 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