Question

Write the formula of calculating gaining ratio.

Hint:

Admission → use \emph{sacrificing} ratio (Old–New); Retirement → use \emph{gaining} ratio (New–Old).

Answer 1

Step 1: When used.
Gaining ratio is used on \emph{retirement/death} of a partner or when remaining partners increase their shares.
Step 2: Compute for each partner.
For partner \(A\): \(G_A = N_A - O_A\), similarly for \(B\), etc. Positive result indicates gain; negative indicates sacrifice.
Step 3: Purpose.
To apportion goodwill/reserve adjustments and revaluation effects fairly among the gaining partners.
Final Answer: \[ \boxed{\text{Gaining Ratio} = (\text{New Share} - \text{Old Share}) \text{ of each continuing partner}} \] % Quciktip