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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.

SOLUTION

Calculation of Gaining Ratio
X: Y: Z Old Ratio = 1/2: 3/10: 1/5 = 5: 3: 2/10
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


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