What is gain ratio ?

1.	What is gain ratio ?
Answer» When there is a change in the ratio of profit and loss sharing of existing partners, a portion of profit of certain partners is increased. This increased portion of profit of a partner is known as ‘Gain Ratio’. Gain ratio of a partner = New profit and loss ratio of a partner – Old profit and loss ratio of a partner.

Answer»

When there is a change in the ratio of profit and loss sharing of existing partners, a portion of profit of certain partners is increased. This increased portion of profit of a partner is known as ‘Gain Ratio’.

Gain ratio of a partner = New profit and loss ratio of a partner – Old profit and loss ratio of a partner.

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What is gain ratio ?

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