Gaining Ratio

It is the ratio of share acquired by the partners, on change in Profit Sharing ratio, admission, retirement or death of a partner.

Gaining ratio = New Profit-sharing ratio - Old Profit-sharing ratio

or

[Gain = New share - Old share]

It's interesting to note that in the above case, if the answer is in negative, the result is sacrifice.

But, It is not necessary that all the remaining partners gain; one or some partners can sacrifice also on retirement/death of a partner.

The Basic condition is the total gain should be equal to the total of the share of the retiring/deceased partner and the sacrifice made by any partner.

Sacrifice Ratio