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If the remaining partners continue the business in the same ratio as their old ratio with one another, what is their gaining ratio?

Answer and explanation

Correct answer: Equal to their old ratio with one another

The gaining ratio compares the additional shares acquired by the continuing partners. If they continue in the same ratio as their old ratio with one another, those additional shares are acquired in that same ratio. Therefore, the gaining ratio equals their old ratio with one another.

Related tags

Gaining RatioOld RatioRetirementGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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