Partnership

Retirement/Death

Easy

common

In the event of the death of a partner, the ratio in which the continuing partners acquire the share from the deceased partner is called .......

Gaining Ratio

New Profit sharing Ratio

Capital ratio

Sacrificing Ratio

✅ Correct Option: 1

When a partner dies, the continuing partners take over the deceased partner's share in the firm. The ratio in which they acquire this share is called the Gaining Ratio.

The gaining ratio represents the additional share each continuing partner receives from the deceased partner's portion. It is calculated as:

Gaining Ratio = New Ratio - Old Ratio

For example, if partners A, B, and C shared profits in the ratio 2:2:1, and C dies, then A and B (the continuing partners) will acquire C's share. The ratio in which A and B gain C's 1/5 share is their gaining ratio.

The other options are different concepts:

New Profit Sharing Ratio is the ratio in which the continuing partners will share future profits after the death/retirement of a partner.

Sacrificing Ratio is used when a new partner is admitted—it shows the ratio in which existing partners sacrifice their share in favor of the new partner (Sacrificing Ratio = Old Ratio - New Ratio).

Capital Ratio simply refers to the ratio of partners' capital balances, which is not relevant in this context.

The correct answer is Option 1: Gaining Ratio.

2022: 15 July Shift 2

A, B and C are partners in a firm sharing profits in the ratio 7:4:4. B retires and on the day of his retirement Goodwill existed in the books at 30,000. B's Capital A/c will be debited by

2026: 13 May Shift 2

A, B and C are partners sharing profits in the ratio 2:2:1. B retires from the firm. After making all adjustments relating to revaluation, goodwill and accumulated profit etc., the capital account of A, B and C showed a credit balance of ₹60,000; ₹70,000; and ₹50,000 respectively. It was decided that the amount payable to B will be brought by A and C in such a way as to make their capitals proportionate to their profit sharing ratio. Calculate the amount to be brought in by A and C.

2026: 20 May Shift 1

From the following options, select the deductions to be made from the share of a partner at the time of his/her retirement.

(A) Debit balance of his current account

(B) Share of goodwill to be written off

(D) Share of loss on revaluation of assets and liabilities

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Manav, Nath and Narayan were partners in a firm sharing profits in the ratio of 1 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2025 Nath died.

Match List-I with List-II

List-I	List-II
(A) There was a debit balance of Rs 30,000 in the profit and loss account.	(I) Nath's Capital A/c will be debited by Rs. 5100
(B) Nath's share of profit/loss in the year of his death was to be calculated on the basis of average profit/loss of last 5 years, the average loss is Rs 90,000.	(II) Nath's Capital A/c will be debited by Rs. 15000
(C) There was a Goodwill appearing in the books for Rs. 25000.	(III) Nath's Capital A/c will be debited by Rs. 12500
(D) There was a drawing of Nath of Rs 85000 on which interest is to be charged at 12%.	(IV) Nath's Capital A/c will be debited by Rs. 22,500

Choose the correct answer from the options given below:

2025: 3 June Shift 2

At the time of retirement of a partner, the difference between the Old Profit Sharing Ratio and the New Profit Sharing Ratio is a negative outcome for a remaining partner. It indicates that :-

2025: 30 May Shift 1

Ranjana, Sadhna and Kamana are partners, sharing profits in the ratio 4:3:2. Ranjana retires; Sadhna and Kamana decide to share profits in the future at the ratio of 5:3. Calculate the Gaining Ratio:

In the event of the death of a partner, the ratio in which the continuing partners acquire the share from the deceased partner is called .......

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