Question : ‘Gaining Ratio’ means -
Option 1: Old Ratio – New Ratio
Option 2: Old Ratio – Sacrificing Ratio
Option 3: New Ratio – Old Ratio
Option 4: New Ratio – Sacrificing Ratio
Answer (1)
24th Jan, 2024
Correct Answer: New Ratio – Old Ratio
Solution : Gaining ratio is a form of financial tool that aids in figuring out how much of an existing partner's profits the remaining partners of a firm will receive in the event of his death or retirement. The ratio by which they split the profits is known as gaining ratio.
Gaining Ratio = New Ratio – Old Ratio
Hence the correct answer is option 3.
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