What is the formula of gaining ratio?

New Ratio – Old Ratio

The correct answer is option 2- New Ratio – Old Ratio.

Gaining ratio = New ratio - Old ratio

The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio. Normally, the continuing partners acquire the share of retiring/deceased partner in their old profit sharing ratio, In that case, the gaining ratio of the remaining partners will be the same as their old profit sharing ratio among them and there is no need to compute the gaining ratio, Alternatively, proportion in which they acquire the share of the retiring/deceased partner may be duly specified. In that case, again, there is no need to calculate the gaining ratio as it will be the ratio in which they have acquired the share of profit from the retiring deceased partner. The problem of calculating the gaining ratio arises primarily when the new profit-sharing ratio of the continuing partners is specified. In such a situation, the gaining ratio should be calculated by, deducting the old share of each continuing partner from his new share i.e., new profit share minus old profit share, i.e., new profit share minus old profit share.