Question

Geeta and Hari were partners in a firm sharing profits and losses in the ratio of 3 : 2. Krish was admitted as a new partner for \( \frac{1}{5} \) share in profits of the firm which he acquired from Geeta and Hari in the ratio of 2 : 3. Krish brought ₹ 1,00,000 as his share of capital and ₹ 50,000 as premium for goodwill in cash. The sacrificing ratio of Geeta and Hari will be:

• A. 3 : 2
• B. 1 : 1
• C. 2 : 3
• D. 13 : 7

Hint:

The sacrificing ratio indicates the portion of their share in profits that each partner gives up to accommodate the new partner.

Answer 1

The Correct Option is C

To ascertain the sacrificing ratio, the profit each partner relinquished for Krish must first be established. Krish's total share is \( \frac{1}{5} \), sourced from the existing partners, Geeta and Hari. Consequently, Geeta and Hari's sacrificing ratio will mirror their original share ratio, which is 2 : 3.