Question

$X,Y$ and $Z$ are partners sharing profits in the ratio of $\frac{1}{2},\frac{3}{10}$ and $\frac{1}{5}$. Calulate the gaining ratio of remaining partners when Y retires from the firm.

Answer 1

Calculation of gaining ratio

X : Y : Z

Old ratio = 1/2 : 3/10 : 1/5

= 5 : 3 : 2

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 = 6/70

Gaining ratio = 15 : 6 or 5 : 2