Question

a. W, X, Y and Z are partners sharing profit and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively Y retire and W, X and Z decided to share the profit and losses equally in future .calculate gaining ratio 

b. A, B and C are partners sharing profit and losses in the ratio of 4:3:2 C retires from the business. A is acquiring 4/9 of C’s share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

Answer 1

New Ratio ( w,x and z) = 1: 1 :1

Gaining Ratio = New Ratio - old Ratio

Gaining Ratio = 0: 1:1

(b) Old Ratio (A,B and C) =4:3:2

C's profit share =1/9

A acquires 4/9 of c"s share and remaining share is acquired by B.

New profit share = old profit share+share acquired from C

New profit Ratio ( A and B) = 44:37

Gaining Ratio = New Ratio - old Ratio 

Gaining Ratio = 8:10 or 4:5