Advertisement Remove all ads

Select the Most Appropriate Answer from the Alternatives Given Below : - Book Keeping and Accountancy

MCQ

Select the most appropriate answer from the alternatives given below :
Gaining ratio is the ratio in which ________________.

Options

  • the old partner gains on admission of a new partner

  • the goodwill of a new partner on admission is credited to old partners

  • the continuing partner’s benefits on retirement or death of a partner

  • none of the above

Advertisement Remove all ads

Solution

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.

Concept: Retirement Or Death of a Partner - Gain Ratio
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 5 Reconstitution of Partnership (Death of Partner)
Exercise | Q 2 | Page 140
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×