Asked Nov 24, 2019

Giving two circumstances in which Gaining ratio may be applied. 


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Gaining ratio Gaining ratio is a proportion of profit that is eamed by the continuing partners from the retiring or death of a partner. This ratio is used in computing amount that is needed to be adjusted towards the goodwill for the gaining partners. Gaining ratio is computed at the time of retirement of the partner by using the below given formula: Gaining ratio New profit sharing ratio- Old profit sharing ratio


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