Calculation of New Profit sharing ratio and Gaining ratio :
1. Nothing is mentioned about the new ratio
If nothing is mentioned about the new ratio, old ratio of the continuing partners is equal to their new ratio. It is proved in the following illustration.
Illustration : 1
A,B and C sharing profits in the ratio of 5:3:2. C retires. Find out the new profit sharing ratio and gaining ratio.
Solution:
2) Unequal gain
Illustration :
D, E and F are partners sharing profits in the ratio of 5 : 3 : 2. F retires and his share was taken up by D and E in the ratio of 2 : 1. Find out the new profit sharing ratio of D and E.
Solution:
3) Equal gain
Illustration:
G, H and I are partners sharing profits in the ratio of 5 : 3 : 2. I retires and his share was taken up by G and H equally. Find out the new Profit sharing ratio of G and H.
Solution :
4) Entire gain by one partner
Illustration :
J, K and L are partners sharing profits in the ratio of 5 : 3 : 2. L retires and his share was taken up entirely by K. Find out the new Profit sharing ratio and gaining ratio of continuing partners.
Solution :
a) New ratio:
b) Gaining ratio :
5) New ratio is given
Illustration :
X,Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Z retires and the ratio between X and Y is 3 : 2. Find out the gaining ratio
Solution: