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

$\begin{array}{ccccccc}& & \mathrm{X}& :& \mathrm{Y}& :& \mathrm{Z}\\ \mathrm{Old}\mathrm{Ratio}& =& \frac{1}{2}& :& \frac{3}{10}& :& \frac{1}{5}\\ & =& \frac{5:3:2}{10}& & & & \end{array}$

New Ratio after Y's retirement = 5 : 2

Gaining Share = New Share – Old Share

$$\begin{gathered} \mathrm{X}\text{'}\mathrm{s}\mathrm{Gain}=\frac{5}{7}-\frac{5}{10}=\frac{15}{70} \\ \mathrm{Z}\text{'}\mathrm{s}\mathrm{Gain}=\frac{2}{7}-\frac{2}{10}=\frac{6}{70} \end{gathered}$$

Gaining Ratio = 15 : 6 or 5 : 2