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Gaining Ratio Video Lecture | Accountancy Class 12 - Commerce

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FAQs on Gaining Ratio Video Lecture - Accountancy Class 12 - Commerce

1. What is Gaining Ratio in commerce?
Ans. Gaining Ratio in commerce refers to the proportion in which the continuing partners of a partnership firm gain the outgoing partner's share in the profits and assets of the firm. It is determined based on the terms agreed upon by the partners and is usually expressed in a ratio format.
2. How is the Gaining Ratio calculated in a partnership firm?
Ans. The Gaining Ratio in a partnership firm is calculated by dividing the total amount of gain received by the continuing partners by the total amount of gain received by all the partners, including the outgoing partner. It is expressed as a fraction or ratio and helps in determining the new profit-sharing arrangement among the remaining partners.
3. What factors are considered while determining the Gaining Ratio in a partnership firm?
Ans. Several factors are considered while determining the Gaining Ratio in a partnership firm. These include the terms agreed upon by the partners, the financial contributions of each partner, their respective capital balances, their share in the profits and losses, and any other relevant considerations outlined in the partnership agreement.
4. How does the Gaining Ratio affect the distribution of profits in a partnership firm?
Ans. The Gaining Ratio directly affects the distribution of profits among the partners in a partnership firm. After the outgoing partner's share is transferred to the continuing partners, the new Gaining Ratio determines the proportion in which the remaining partners will share the profits. The higher the Gaining Ratio, the larger the share of profits a partner will receive, and vice versa.
5. Can the Gaining Ratio be different from the existing profit-sharing ratio in a partnership firm?
Ans. Yes, the Gaining Ratio can be different from the existing profit-sharing ratio in a partnership firm. The Gaining Ratio is specifically determined when an outgoing partner leaves the firm, and it may be different from the original profit-sharing arrangement among the partners. The Gaining Ratio is adjusted to reflect the changes in the partnership's financial structure and the redistribution of profits among the remaining partners.
41 videos|106 docs|56 tests
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