Ansh and Vansh share profits in the ratio \(4:1\). Reshma is admitted as a partner for a \(\frac{1}{5}\) share of profits, which is acquired from Ansh and Vansh in their old profit-sharing ratio. What will be Ansh’s new share of profit?

Correct answer: \(\frac{16}{25}\)

After giving Reshma \(\frac{1}{5}\) of the profit, the remaining share for the old partners is \(1-\frac{1}{5}=\frac{4}{5}\). Ansh’s old share was \(\frac{4}{5}\) of the total old-partner share, so his new share is \(\frac{4}{5}\times\frac{4}{5}=\frac{16}{25}\). Option B is the total share left for both old partners, not Ansh’s individual share. Exam tip: subtract the new partner’s share first, then distribute the remainder in the old ratio.