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If 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 compares the additional share acquired by each remaining partner from the retiring partner. Since both partners acquire equal additional shares, their gaining ratio is 1:1. The old profit-sharing ratio represents their previous shares, not their gains. Exam tip: when the retiring partner’s share is acquired equally, write the gaining ratio as 1:1.

Related tags

Gaining RatioPartner RetirementRemaining PartnersProfit Sharing RatioAccountancy Class 12New RatiosReconstitution Retirement Or Death Of A PartnerAccountancy

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