English

‘Gaining Ratio’ means ______. - Accounts

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Question

‘Gaining Ratio’ means ______.

Options

  • Old Ratio - New Ratio

  • New Ratio - Old Ratio

  • Old Ratio - Sacrificing Ratio

  • New Ratio - Sacrificing Ratio

MCQ
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Solution

‘Gaining Ratio’ means New Ratio - Old Ratio.

Explanation:

Gaining Ratio refers to the portion of profit gained by continuing partners when a partner retires or dies. It is calculated to determine how much of the outgoing partner’s share each continuing partner is acquiring.

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Chapter 4: Retirement or Death of a Partner - OBJECTIVE TYPE QUESTIONS [Page 4.190]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 4 Retirement or Death of a Partner
OBJECTIVE TYPE QUESTIONS | Q 2. | Page 4.190
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