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A B C are partners sharing profits and losses in the ratio of 3:2:1. B retires from the firm. Calculate gaining ratio and new ratio.

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Let us assume new profit sharing ratio between A and C is 1:1. Gaining Ratio: A= 1/2 - 3/6 =0 B= 1/2- 1/6 = 1/3.
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Meaning of partnership term
Partnership is the legal relation between two or more persons who have agreed to share profits and losses of the business carried on by all or any of them acting for all.

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