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Question
Retiring partner is compensated for parting with the firm's future profits in favour of the remaining partners. The remaining partners contribute to such compensation amount in ______.
Options
Gaining Ratio
Sacrificing Ratio
Capital Ratio
Profit-Sharing Ratio
MCQ
Fill in the Blanks
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Solution
Retiring partner is compensated for parting with the firm's future profits in favour of the remaining partners. The remaining partners contribute to such compensation amount in Gaining Ratio.
Explanation:
Retiring partners are compensated in a gaining ratio by the surviving partners for giving up a portion of the firm's future profits in favour of the remaining partner.
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