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: Understanding the Concept:
When a partner dies, his or her share of profit goes to the surviving partners. Each surviving partner gains some extra share.

Step 2: Key Formula or Approach:
The ratio of this gain among the surviving partners is called the Gaining Ratio. It is found for each continuing partner as: Gaining Share = New Share - Old Share.

Step 3: Check option (1) New Ratio:
The new ratio is the total profit sharing ratio after the death. It includes the old share plus the gain. It is not the ratio of the gain alone. So (1) is wrong.

Step 4: Check option (2) Old Ratio:
The old ratio is the ratio before the death. It has nothing to do with the share acquired. So (2) is wrong.

Step 5: Check option (3) Sacrificing Ratio:
The sacrificing ratio is used when a new partner is admitted. The old partners give up (sacrifice) part of their share. It is not used for a death or retirement. So (3) is wrong.

Step 6: Check option (4) Gaining Ratio:
The share that survivors acquire from the deceased partner is divided in the gaining ratio. So (4) is CORRECT.

Final Answer:
The ratio in which continuing partners acquire the share of a deceased partner is the Gaining Ratio. \[ \boxed{\text{Gaining Ratio (Option 4)}} \]