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Select the most appropriate answer from the alternatives given below :Gaining ratio is the ratio in which ________.OptionsThe old partner gains on admission of a new partnerThe goodwill of a new partner on admission is credited to old partnersThe continuing partner’s benefits on retirement or death of a partnerNone of the above |
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Answer» Gaining ratio is the ratio in which the continuing partners benefit on retirement or death of a partner. Explanation: On the eve of retirement or death, the remaining (continuing) partners acquire the outgoing (retiring or deceased as the case may be) partner’s share. The ratio in which the continuing partners acquire (gain) the outgoing partner’s share is termed as gaining ratio. |
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