The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called: |
New profit sharing ratio Gaining ratio Sacrificing ratio Old profit sharing ratio |
Gaining ratio |
The correct answer is Option (2) → Gaining ratio When a partner retires or dies, the remaining (continuing) partners acquire that partner’s share of profit in a certain proportion. The ratio in which they gain the outgoing partner’s share is known as the Gaining Ratio. Gaining Ratio=New Ratio−Old Ratio |