The ratio which is calculated in the event of retirement or death of a partner is called gaining ratio. It is "new ratio - old ratio" the difference is called gaining ratio e.g there are three partners A, B, and C in a firm. suppose at that time the ratio of profit and loss was 1/3 for each and now further suppose that one partner C retires from the firm, the new ratio for remaining partners A & B will be 1/2 for each. The gaining ratio is 1/2 -1/3 = 1/6. So we can say that it is the share of profit which is given by C to A & B.
FEEDBACK ABOUT ANY MISTAKE WILL HIGHLY BE APPRECIATED.
FEEDBACK ABOUT ANY MISTAKE WILL HIGHLY BE APPRECIATED.
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