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A B C and D share in 2:3:1:4. D retires and no information is given. What will be the new ratio of A B C?

Answer and explanation

Correct answer: 2:3:1

The direct answer is option A, 2:3:1. The old ratio is A:B:C:D = 2:3:1:4. When D retires, only D leaves; the question gives no special instruction about how D's share will be acquired. In this standard partnership-accounting situation, the continuing partners' old mutual ratio remains unchanged unless another ratio is specifically stated. Therefore A, B and C continue in the ratio 2:3:1. Option A is correct. Option B, 2:3:4, incorrectly includes D's four parts even though D has retired. Option C, 3:1:4, changes the order and again includes D, so it cannot be the ratio of A, B and C after D's retirement. Option D, 1:1:1, assumes equal sharing, which is not given and conflicts with the old mutual ratio. The total old parts were 10, but the common factor is not important; after D's share is dealt with without any stated change, the relative shares of A, B and C remain 2, 3 and 1. Memory cue: no information means preserve the continuing partners' old mutual ratio.

Related tags

Four PartnersNo InformationNew Ratio

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