BBC Scotland reporter Richard Wilson has written a piece on the reasons for Ally McCoist handing in his resignation notice at Ibrox. A source told the BBC: "This is not him walking away. He has just handed in his notice. He needs some time out to recharge his batteries, but he will continue to help Rangers and Rangers supporters as much as he can."

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Kevin Holt fires in the opening goal with a cracking free-kick for the Doonhamers midway through the first half.

Patrick, Aberdeen: "So Ally has offered to walk for a pay off because people at the club have been made redundant - yeah right! PR puff piece. Do you think we came in on the last tide Mr Wilson? Ally is playing a game of chess. There is no integrity or higher level ethic at play - something has happened at Ibrox today and Ally is playing games."

Anonymous: "Ally McCoist unfortunately has become a pantomime villain but like me, and I'm a Celtic fan, I'm sure all honest football fans want him to stay in the game at Ibrox."

Former Rangers players Jorg Albertz, Steven Thompson and Derek Ferguson give their reaction to the news of Ally McCoist handing in his notice at Ibrox.

John Baird claims for a penalty as he tumbles in the box under a challenge by Darren McGregor. There was contact between the players but the lively Doonhamers striker had lost control of the ball and Rangers keeper Steve Simonsen was already mopping up as he hit the turf.

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Ally McCoist cuts a relaxed figure at Palmerston as he and Rangers coach Kenny McDowall chat on the touchline.

Nico: "My grandmother could have steered Rangers through lower divisions, full-time pro's against part-timers. Ally deserves credit for sticking by the club and always trying to be positive in unimaginable conditions, but he can do no more. Time to step down. Terry Butcher will be announced as replacement in next few days."

Zander Clark is all at sea at a Rangers cross and when a second high ball comes into the box moments later the Queens goalie stays on his line. Bilel Mohsni out-jumps his marker and really ought to have hit the target with his header but nods over the home side's crossbar from 10 yards.

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Chairman of the Rangers football board Sandy Easdale and his younger brother James, a Rangers director, take in the match at Dumfries.

BBC Radio Scotland commentator Rob Maclean

"How much have the day's events played on the minds of the Rangers players?" It would seem pretty heavily, judging the performance so far.

A cross from the right is missed completely by Rangers centre-half Bilel Mohsni and Iain Russell is caught off guard when the ball comes his way - he scuffs a shot wide from six yards.

Rangers are under more pressure, with skipper Lee McCulloch scrambling to shin a cross out for another corner. Iain Russell heads the delivery back into the centre and Rangers defender Bilel Mohsni prods the ball towards his own goalkeeper.

Bang! What a strike by Kevin Holt from the free-kick 20 yards out. Steve Simonsen had no chance in the Rangers goal as the ball flew into the top corner.

Darren McGregor slips on the edge of the box and can consider himself fortunate not to be sent off as he throws up an arm to stop a cross falling to an unmarked Queens player. Ian McShane lines up the free-kick...

Rangers fans are entitled to be rather puzzled. Ally McCoist seems in good spirits, smiling broadly in the technical area in Dumfries. His pre-match remarks suggest he's either playing it cool and saying all the right things about wanting to stay to guide Rangers into the top flight, or has merely given 12 months' notice and genuinely wants to see his time out, or feels a weight has been lifted off his shoulders and is enjoying turning the tables on the Ibrox board, knowing they have no immediate source of income to pay him off. It's certainly intriguing... But what if Rangers lose further ground to Hearts in the league? What then?

Veteran striker Kenny Miller blasts a shot a foot over the Queens crossbar.

John Baird, in midfield for this move, sends Iain Russell scampering down the right. He leaves Dean Shiels for dead and cuts into the Rangers box but his powerful shot is aimed too directly at Steve Simonsen.

Fraser Aird for Rangers and John Baird for Queens are causing bother down the right flanks. They are both seeing a lot of the ball.

Rangers defender Darren McGregor concedes a corner, which Ian McShane clips in to the box but it is cleared with ease. His second delivery is no more threatening and Rangers clear their lines.