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On retirement or death for what purpose is gaining ratio often used?

Answer and explanation

Correct answer: For goodwill adjustment

Remaining partners bear retiring or deceased partner goodwill share in gaining ratio. So it is important in goodwill adjustment.

Related tags

Gaining RatioGoodwill AdjustmentNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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