what do you understand by gaining ratio
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Explanation:
Gaining ratio is a financial tool that helps to measure the proportion in which a firm's remaining partners acquire the retiring partner or deceased partner's shares. ... Usually, it is computed when a partner decides to retire or during the death of a partner.
Definition: It is the proportion in which the remaining partners of a firm acquire the sh...
Objective: It comes in handy for calculating the extent of compensation that will be p...
Formula: The formula of gaining ratio = New profit sharing ratio – Old profit sharing r...
Time of calculation: It is calculated in the event of death or at the time of retirement of a
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