Question

X,Y and Z were partners in a firm sharing profit in 5:3:2 ratio On 31st march 2020 Z retired from the firm On the date of Z's retirement the balance sheet of the firm was as follows.​

Answer 1

Answer:

Gaining ratio or sacrificing ration will be calculated as:

Gaining/Sacrificing Ratio = New Ratio - Old Ratio

Therefore:

For X = 5/10 - 5/10

= 5 - 5

10

= No Change

For Y = 2/10 - 3/10

= 2 - 3

10

= 1/10 Sacrificing Ratio

For Z = 3/10 - 2/10

= 3 - 2

10

= 1/10 Gaining Ratio