Question

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Q. How is gaining ratio calculated?

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Answer 1

Gaining ratio is calculated at the time of retirement or death of a partner. It is the ratio in which the remaining partners acquire the outgoing partner's share of profit. When the partner retires, the profit sharing ratio of the continuing partners gets changed

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Answer 2

Answer:

Gaining ratio is computed during the death or retirement of a partner. It is the ratio in which the existing partners obtain the profit portion of the departing partner’s. The ratio in which the continuing partners have obtained the portion from the deceased/retiring partner is known as the gaining ratio. Usually, the continuing partners obtain the share of the retiring/dead partner from their old profit sharing ratio. In that scenario, 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 calculate the gaining ratio.

Explanation:

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