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What does the gaining ratio show when a partner retires?

Answer and explanation

Correct answer: The ratio in which the continuing partners acquire the retiring partner’s share

The gaining ratio shows the relative shares in which the continuing partners gain the retiring partner’s share. It is used when adjusting goodwill on retirement.

Related tags

Gaining RatioRetirementNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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