The formula to calculate the Gain Ratio (GR) is:
\[ \text{GR} = \text{PS} \times \text{AR} \]
Where:
Let's say the retiring partner's share is $50,000 and the acquisition ratio is 1.2. Using the formula:
\[ \text{GR} = 50000 \times 1.2 \]
We get:
\[ \text{GR} = 60000 \]
So, the gain ratio is $60,000.
Definition: The gaining ratio is used to determine the share of profit or loss that a partner gains when another partner retires or leaves the partnership.
Formula: \( \text{Gaining Ratio} = \text{New Ratio} - \text{Old Ratio} \)
Example: \( \text{Gaining Ratio} = \frac{3}{5} - \frac{2}{5} \)
Definition: The gaining ratio is calculated by subtracting the old ratio from the new ratio.
Formula: \( \text{Gaining Ratio} = \text{New Ratio} - \text{Old Ratio} \)
Example: \( \text{Gaining Ratio} = \frac{4}{7} - \frac{3}{7} \)
Definition: This calculator determines the rate of gain over a period.
Formula: \( \text{Rate of Gain} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \times 100 \)
Example: \( \text{Rate of Gain} = \frac{150 - 100}{100} \times 100 \)
Definition: Gain is calculated by subtracting the initial value from the final value.
Formula: \( \text{Gain} = \text{Final Value} - \text{Initial Value} \)
Example: \( \text{Gain} = 200 - 150 \)
Definition: Percentage gain is calculated by dividing the gain by the initial value and multiplying by 100.
Formula: \( \text{% Gain} = \frac{\text{Gain}}{\text{Initial Value}} \times 100 \)
Example: \( \text{% Gain} = \frac{50}{200} \times 100 \)
Definition: This calculator determines the percentage gain over a period.
Formula: \( \text{% Gain} = \frac{\text{Gain}}{\text{Initial Value}} \times 100 \)
Example: \( \text{% Gain} = \frac{30}{120} \times 100 \)
Definition: Percent gain is calculated by dividing the gain by the initial value and multiplying by 100.
Formula: \( \text{% Gain} = \frac{\text{Gain}}{\text{Initial Value}} \times 100 \)
Example: \( \text{% Gain} = \frac{40}{160} \times 100 \)
Definition: Gain percentage is calculated by dividing the gain by the initial value and multiplying by 100.
Formula: \( \text{% Gain} = \frac{\text{Gain}}{\text{Initial Value}} \times 100 \)
Example: \( \text{% Gain} = \frac{60}{240} \times 100 \)