Question

The ratio in which the continuing partners have acquired the share from the deceased partner is known as .

• A. New Ratio
• B. Old Ratio
• C. Sacrificing Ratio
• D. Gaining Ratio

Hint:

Retirement or death gives a gain to the remaining partners.

Answer 1

The Correct Option is D

Step 1: Match the event to the term:
Admission of a partner leads to a sacrifice by the old partners. Retirement or death leads to a gain for the remaining partners. So the term we need must be about a gain.

Step 2: Formula:
Gaining Ratio = New Ratio - Old Ratio. A positive answer for a partner means he gains share.

Step 3: Quick example:
A, B and C share 3:2:1. C dies and A and B decide to share equally. A's gain = 1/2 - 3/6 = 0. B's gain = 1/2 - 2/6 = 1/6. So all of C's 1/6 goes to B.

Step 4: Eliminate:
New ratio and old ratio are just the after and before ratios. Sacrificing ratio applies to admission. Only the gaining ratio describes the share acquired from the deceased partner.

Final Answer:
The acquired share is divided in the Gaining Ratio, option 4. \[ \boxed{\text{Gaining Ratio (Option 4)}} \]