Read the following passage and answer the question.
X, Y, Z were partners sharing profits and losses in the ratio of 1:2:3. Z retired and his capital after making all adjustments is ₹2,20,000. X & Y agreed to pay him ₹2,50,000 in full settlement of his claim. The new profit-sharing ratio is 1:3.
What is the gaining ratio?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 1:5.
Gain of partner = New share - Old share
Gain of X = 1/4 - 1/6
= (3-2)/12
= 1/12
Gain of Y = 3/4 - 2/6
= (9-4)/12
= 5/12
GAINING RATIO = 1/12 : 5/12
= 1:5