Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio of . They admitted Ajay into partnership with share in profits. Ajay brings in for capital and the requisite amount of premium in cash for goodwill. The goodwill of the firm is valued at . The new profit sharing ratio is . The sacrificing ratio of Vijay and Sanjay is:
- A
- B
- C
- D
Solution & Step-by-step Explanation
The sacrificing ratio is calculated using the formula:
Given details:Old Ratio of Vijay and Sanjay = New Ratio of Vijay, Sanjay, and Ajay = Let's compute the individual sacrificing shares:Vijay's Sacrifice:
Sanjay's Sacrifice:
Comparing the sacrificing shares of Vijay and Sanjay:
Given details:Old Ratio of Vijay and Sanjay = New Ratio of Vijay, Sanjay, and Ajay = Let's compute the individual sacrificing shares:Vijay's Sacrifice:
Sanjay's Sacrifice:
Comparing the sacrificing shares of Vijay and Sanjay: