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A B and C share 4:5:1. C retires and A and B take his share in 1:4. What will be the new ratio of A and B?

Answer and explanation

Correct answer: 21:29

Direct answer: Option A, 21:29. The total old ratio is 4+5+1=10. Thus A has 4/10, B has 5/10 and C has 1/10. C’s share is taken by A and B in 1:4, so the five parts give A (1/10)×(1/5)=1/50 and B (1/10)×(4/5)=4/50. A’s new share is 4/10+1/50=20/50+1/50=21/50. B’s new share is 5/10+4/50=25/50+4/50=29/50. Hence their ratio is 21:29. Option A is correct. Option B, 4:5, is only their old ratio and forgets the transfer. Option C, 5:9, has no correct calculation from the given data. Option D, 1:4, is only the gaining proportion, not the final ratio. Since A and B receive all of C’s share, their new shares add to 50/50. Exam cue: first find the retired partner’s fraction, then divide it in the gaining ratio.

Related tags

RetirementAcquired ShareNew Ratio

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