What is Gaining Ratio ?

By Sandeep Kumar

 "Gaining ratio" typically refers to the ratio used in accounting to distribute profits or losses among the partners of a partnership firm. It is applied when there is a change in the profit-sharing ratio among the partners due to various reasons such as the admission of a new partner or the retirement of an existing partner. The gaining ratio helps determine how the profits or losses will be distributed among the partners based on the new profit-sharing arrangement.

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