| Description | Gaining Ratio | Sacrificing Ratio |
| Formula for calculation | New profit Sharing Ratio Less Old Profit Sharing ratio | Old profit sharing Ratio Less New profit Sharing Ratio |
| When calculated | a) Retirement of a Partner b) Change in profit sharing ratio among existing partners | a) Admission of a partner b) Change in profit sharing ratio among existing partners |
| Impact on share of profits | The share of remaining partners increases | The share of existing partners decreases |
| Objective | Mainly used to find the goodwill share that the remaining partners will pay to the retiring partner | Mainly used to find the amount of goodwill that the incoming partner will pay to the existing partners |
