Question

Give any to circumstances in which gaining ratio may be applied

Answer 1

Every reconstitution of partnership, e.g. admission, retirement, change in profit sharing ratio, leads to some sacrificing partner and some gaining partners.

List of circumstances are:

1. Admission of a partner
2. Retirement of a partner
3. Death of a partner
4. Change in profit or loss sharing ratio

Answer 2

death of a partner

admission of a partner

retirement of a partner