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A B C and D share 4:1:3:2. B retires. What is the old mutual ratio of continuing partners?

Answer and explanation

Correct answer: 4:3:2

Direct answer: Option A, 4:3:2. The old ratio of A, B, C and D is 4:1:3:2. B retires, so B’s term is removed when we ask for the continuing partners’ old mutual ratio. The remaining partners are A, C and D, and their old shares are still 4, 3 and 2 units. Therefore their mutual ratio is 4:3:2. Option A is correct. Option B, 4:1:3, wrongly keeps B’s share and omits D. Option C, 1:3:2, begins with B’s old share, so it is not the ratio of A, C and D. Option D, 3:2:4, changes the order and values without any stated reason. No gaining or sacrificing information is supplied, so there is no further redistribution to calculate. The word “mutual” means compare only the partners who continue, using their old relative shares. Exam cue: delete the retiring partner’s number and preserve the order of the remaining partners.

Related tags

Four PartnersMutual RatioRetirement

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