Question

The old profit sharing ratio among Rajender, Satish and Tejpal were `2:2:1`. The New Profit Sharing Ratio after Satish’s retirement is `3:2`. The gaining ratio is–

Answer 1

Answer:

I don't know this summary

Answer 2

Given:

• The old profit-sharing ratio among Rajender, Satish and Tejpal was 2:2:1.
• The new profit-sharing ratio after Satish's retirement is 3:2.

To find: The gaining ratio.

Answer:

• Rajender's old share = 2/5
• Satish's old share = 2/5
• Tejpal's old share = 1/5

• Rajender's new share = 3/5
• Tejpal's new share = 2/5

Calculation of the gaining ratio:

Gaining ratio = New share - Old share

For Rajender:

• Gaining share = 3/5 - 2/5 = 1/5

For Tejpal:

• Gaining share = 2/5 - 1/5 = 1/5

Therefore, the gaining ratio is 1:1.

The gaining ratio is generally used to distribute goodwill/premium for goodwill at the time of admission/retirement/death of a partner.