Question

X, Y and Z are three partners sharing profits in the ratio 10 : 7 : 7. Z retired. X and Y decided to share profits in equal ratio. Gaining ratio will be:

• A. 1 : 4
• B. 10 : 7
• C. 7 : 10
• D. 4 : 1

Hint:

When calculating gaining ratios, focus on how the shares change after a partner exits or joins, and adjust for any remaining partners' new shares.

Answer 1

The Correct Option is D

Step 1: Understanding the situation.
X, Y, and Z share profits in the ratio of 10 : 7 : 7. Z retires, and X and Y agree to share profits equally. The gaining ratio is calculated based on the change in profit-sharing percentages.
Step 2: Analyzing the options.
(A) 1 : 4: Incorrect — This does not represent the correct proportion of gains.
(B) 10 : 7: Incorrect — This was the original profit-sharing ratio before Z retired.
(C) 7 : 10: Incorrect — This is the reverse of the correct gaining ratio.
(D) 4 : 1: Correct — This represents the gaining ratio between X and Y, where Y's share increases at the expense of Z's exit.
Step 3: Conclusion.
The correct answer is (D) 4 : 1, as this is the correct gaining ratio between X and Y after Z's retirement.