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Why is Gaining Ratio calculated?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Gaining ratio is required because the continuing partners will pay the amount of goodwill to the retiring partner in their gaining ratio.







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Previous PostState two basis lor determination of Profits from the date oflast Balance Sheet to the date of death/retirement.
Next PostWhy are assets and liabilities revalued at the time of retirement of a partner?

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