Retiring partner is compensated for sacrificing profit share in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?
Retiring partner is compensated for sacrificing profit share in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?
a) Profit sharing Ratio
b) Sacrificing Ratio
c) Gaining Ratio
d) Capital Ratio
Anurag Pathak Changed status to publish July 3, 2023
Ans – c)
Explanation:-
Retiring partners share is acquired by continuing partners in gaining ratio. Thus all continuing partners compensate retiring partner in gaining ratio.
Anurag Pathak Changed status to publish July 3, 2023
