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Which formula is correct for finding a continuing partner’s gaining share?

Answer and explanation

Correct answer: New share − Old share

A continuing partner gains when the new profit-sharing share is greater than the old share. Therefore, gaining share = New share − Old share. Option B reverses the order and generally represents sacrifice or a decrease. Exam tip: remember New − Old for gain and Old − New for sacrifice.

Related tags

Gaining ShareGaining RatioPartnership ReconstitutionNew RatioRetirement Of PartnerNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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