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If the two remaining partners acquire the retiring partner’s share equally, what will be their gaining ratio?

Answer and explanation

Correct answer: 1:1

The gaining ratio shows the proportion in which the remaining partners acquire the retiring partner’s share. Since both partners acquire equal shares, their gains are equal, so the gaining ratio is 1:1. Remember that the gaining ratio is generally calculated from the difference between the new ratio and the old ratio.

Related tags

Gaining RatioRetirement Of PartnerNew RatioPartnership AccountsNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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