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P, Q and R are partners sharing profits in the ratio of 7: 5: 3. P retires and it is decided that profit-sharing ratio between Q and R will be same as existing between P and Q. Calculate New profit-sharing ratio and Gaining Ratio.

SOLUTION

Calculation of Gaining Ratio
P: Q :R = 7: 5: 3 (Old ratio)
Q: R = 7: 5 (New ratio, same as between P & Q)

Gaining Ratio = New Ratio – Old Ratio
Q’s Gain = 7/12−5/15 = 35−20/60 = 15/60
R’s Gain = 5/12−3/15 = 25−12/60 = 13/60
Q: R = 15: 13


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