Question

W, X, Y and Z are partners sharing profits and losses in the ratio of `1/3, 1/6, 1/3 and 1/6` respectively. Y died, and W, X and Z decide to share the profits and losses equally in the future.

Calculate the Gaining Ratio.

Answer 1

W’s Old Share = `1/3`

= `(1 xx 2)/(3 xx 2)`

= `2/6`

X’s Old Share = `1/6`

Y’s Old Share = `1/3

= `(1 xx 2)/(3 xx 2)`

= `2/6`

Z’s Old Share = `1/6`

After Y dies, W, X, and Z decide to share profits equally, meaning their new ratio is 1 : 1 : 1.

W’s New Share = `1/3`

= `(1 xx 2)/(3 xx 2)`

= `2/6`

X’s New Share = `1/3`

= `(1 xx 2)/(3 xx 2)`

= `2/6`

Z’s New Share = `1/3`

= `(1 xx 2)/(3 xx 2)`

= `2/6`

Gaining Share = New Share − Old Share

W’s Gain = `2/6 - 2/6`

= 0

X’s Gain = `2/6 - 1/6`

= `1/6`

Z’s Gain = `2/6 - 1/6`

= `1/6`

The gained shares of W, X, and Z are 0 : 1 : 1.