Write the Term / Word / Phrase Which Can Substitute the Following Statement - Book Keeping and Accountancy

One Word Answer

Write the term / word / phrase which can substitute the following statement :
The proportion in which the continuing partners benefit due to retirement of partner.

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Solution

Gaining Ratio

Explanation: The proportion in which the continuing partners benefit due to retirement of a partner is called gaining ratio. It is calculated on the retirement or death of a partner for adjusting the retiring/deceased partner’s share of goodwill.

Concept: Retirement Or Death of a Partner - Treatment of Goodwill

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Chapter 4: Reconstitution of Partnership (Retirement of Partnership) - Exercise [Page 127]

Q 3 Q 2 Q 4