Question

$X,Y$ and $Z$ are partners sharing profit in the ratio of $\frac{1}{2},\frac{2}{5}$ and $\frac{1}{10}$. Find the new ratio of remaining partners if $Z$ retires.

Answer 1

We are given the profit sharing ratio as $\frac{1}{2},\frac{2}{5}$ and $\frac{1}{10}$
Simplifying this we get the ratio as $5:4:1$
Now, as $Z$ retires, the new profit sharing ratio between $X$ and $Y$ will be $5:4$.That is, by striking of $Z^{\prime }s$ share we get this as the profit sharing ratio of remaining partners.