Question

X, Y and Z are partners sharing profits in the ratio of 1/2, 3/10, and 1/5. Calculate the gaining ratio of remaining partners when Y retires from the firm.

Answer 1

Calculation of Gaining Ratio

`"Old Ratio" = "X : Y : Z"`

                       `1/2 : 3/10 : 1/5`

                   =  `(5 : 3 : 2)/10`

New Ratio after Y's retirement = 5 : 2

`"Gaining Share = New Share – Old Share"`

`"X's Gain" = 5/7 - 5/10 = 15/70`

`"Z's Gain" = 2/7 - 2/10 = 6/10`

`"Gaining Ratio" = 15 : 6 or 5 : 2`