Let cost price of spirit be Re. 1 per liter.
Then SP of mixture = Re. 1 per liter
Gain = 25%
So, CP of mixture = 1 × (100 / 125) = Re. 4 / 5
We assume that CP of water is zero.
Using allegation rule on cost price,
Water should be mixed to spirit in the ratio (1 / 5) : (4 / 5) or 1 : 4