English

State Whether the Following Statements is True Or False : - Book Keeping and Accountancy

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Question

State whether the following statements is true or false :

Gaining ratio means old ratio minus new ratio.

Options

  • True

  • False

MCQ

Solution

False

Explanation: Gaining ratio is the ratio in which continuing partners acquire the retiring partner’s share. In other words,

Gaining Ratio = New Ratio – Old Ratio

Hence, the given statement is incorrect.

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Retirement Or Death of a Partner - Gain Ratio
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Chapter 4: Reconstitution of Partnership (Retirement of Partnership) - Exercise 4 [Page 127]

APPEARS IN

Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 4 Reconstitution of Partnership (Retirement of Partnership)
Exercise 4 | Q 1 | Page 127
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