Gaining Ratio: It is calculated when a partner retires or . When a partner retires or his share of profit is taken over by the remaining partners. The ratio in which the remaining partners share increases is called the Gaining Ratio.
Gaining ratio is the ratio in which the remaining partners will pay the amount of goodwill to the retiring partner.
If the new profit sharing ratio of the remaining partners is given in the question, gaining ratio is calculated by deducting old ratio from the new ratio.
Gaining Ratio = New Ratio – Old Ratio
