Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio of 3:2. They admitted Ajay into partnership with 1/4th share in profits. Ajay brings in ₹30,000 for capital and the requisite amount of premium in cash for goodwill. The goodwill of the firm is valued at ₹20,000. The new profit sharing ratio is 2:1:1. The sacrificing ratio of Vijay and Sanjay is:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2:3.
Vijay and Sanjay old ratio = 3:2
Ajay admits
The new profit sharing ratio is 2:1:1.
Sacrificed share = Old share - New share
Sacrifice of Vijay = 3/5 - 2/4
= (12-10)/20
= 2/20
Sacrifice of Sanjay = 2/5 - 1/4
= (8-5)/20
= 3/20
Sacrificing ratio = 2/20 : 3/20
= 2:3