Benefit or Gain Ratio is a ratio by which surviving partners are benefited due to death of a partner. The extra share which they are getting is added in their old share. Such extra share which they are getting is called as ‘Gain’ and the ratio is called as ‘Gain Ratio’. This ratio is normally used to write off the goodwill created or raised to the extent of retiring partner share only. It is calculated by using following formula.
Gain ratio = New Ratio - Old Ratio
