Question

Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount? (a) Gaining Ratio (b) Capital Ratio (c) Sacrificing Ratio (d) Profit Sharing Ratio

Answer 1

Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. In Profit Sharing Ratio the remaining partners contribute to such compensation amount.

So, the answer is :-

[D] Profit Sharing Ratio ✓✓

Answer 2

Hello Friend

ans

Option.D

Thank you