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# Gaining Ratio - Commerce Commerce Notes | EduRev

## Commerce : Gaining Ratio - Commerce Commerce Notes | EduRev

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## Gaining Ratio

Gaining ratio is calculated at the time of retirement or death of a partner. It is the ratio in which the remaining partners acquire the outgoing partnerâ€™s share of profit.

When the partner retires, the profit sharing ratio of the continuing partners gets changed. Continuing partners distribute the share of retiring partner among them.

Gaining ratio= New Ratio â€“ Old Ratio (if positive)

## Solved Examples for You

Various cases of new ratio and gaining ratio are explained as follows:

Case 1: When the share of retiring partner is acquired by old partners in an old ratio

Amit, Sumit, and Punit share profit and losses in the ratio of 3:2:1, respectively. Amit retires and the remaining partners decide to share to take Amitâ€™s share in the existing ratio i.e. 2:1. Calculate the new ratio and gaining ratio.

Solution: The existing ratio between Sumit and Punit= 2/6 and 1/6

Amitâ€™s ratio (retiring partner) = 3/6

Amitâ€™s share taken by Sumit and Punit in the ratio of 2:1

Sumit gets = 3/6 * 2/3 = 6/18

Punit gets = 3/6 * 1/3 = 3/18

New ratio between Sumit and Punit is = 6:3 = 2:1

Gaining ratio= New Ratio â€“ Old Ratio

Sumitâ€™s gain = 2/3 â€“ 2/6 = 2/6

Punitâ€™s gain = 1/3 â€“ 1/6 = 1/6

Gaining ratio = 2:1

New Ratio = 2:1

Case 2: When the share of retiring partner is acquired by old partners in old specified proportions

Amit, Sumit, and Punit share profit and losses in the ratio of 2:3:1, respectively. Amit retires and the remaining partners decide to share to take Amitâ€™s share equally. Calculate the new ratio and gaining ratio.

Solution: The existing ratio between Sumit and Punit= 3/6 and 1/6

Amitâ€™s ratio (retiring partner) = 2/6

Amitâ€™s share taken by Sumit and Punit in the ratio of 1:1

Sumit gets = 2/6 * 1/2 = 1/6

Sumitâ€™s new share = 3/6 + 1/6 = 4/6

Punit gets = 2/6 * 1/2 = 1/6

Punitâ€™s new share = 1/6 + 1/6 = 2/6

New ratio between Sumit and Punit is = 4:2 = 2:1

Gaining ratio is given the question  i.e. 1:1

Gaining ratio = 1:1

New Ratio = 2:1

Case 3: When the share of retiring partner is acquired fully by one of the continuing partners

Amit, Sumit, and Punit share profit and losses in the ratio of 4:5:2, respectively. Amit retires and Punit acquires Amitâ€™s share. Calculate the new ratio and gaining ratio.

Solution: Punitâ€™s new share = 2/11 + 4/11 = 6/11

Sumit share remains unchanged = 5/11

The new ratio between Sumit and Punit is = 5:6

Gaining ratio in this case between Sumit and Punit will be

Sumitâ€™s gain = 5/11 â€“ 5/11 = Nil

Punitâ€™s gain = 6/11 â€“ 2/11 = 4/11

This shows that entire gain is taken by Punit.

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