Question

X, Y and Z are three partners in a partnership firm, sharing profit and loss in the ratio 2:2:1. Y retires from the firm on 31st march. His share of profit is purchased by X and Y in the ratio of 1:2. What is the gaining ratio of the remaining partners?

• A. 1:1
• B. 2:1
• C. 1:2
• D. 5:4

Answer 1

The correct option is C 1:2

Old ratio (X, Y and Z) = 2 : 2 : 1

Y's share = 2/5

Share of Y taken by X = (2/5) * (1/3) = 2/15

Share of Y taken by Z = (2/5) * (2/3) = 4/15

New ratio = Old profit share + share taken from Y

X = (2/5) + (2/15) = 8/15

Z = (1/5) + (4/15) = 7/15

Gaining ratio = New ratio - old ratio

X = (8/15) - (2/5) = 2/15

Z = (7/15) - (1/5) = 4/15

Therefore, gaining ratio = 2 : 4 = 1 : 2