The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called:
Answer & explanation
Correct answer: option 2
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