DIRECTION Analyze the following case study and answer the questions 1 to 4 on the basis of the same.Given below is the balance sheet of A and B who are partners in a firm sharing profits in the ratio of 3:2On the same date, C is admitted as a partner on the following terms. (i) A gives 1/3rd of his share , while B gives 1/10 th from his share to C (ii) Goodwill is valued at 2 years purchase of the average profits of the last 5 years, which were Rs 50,000(loss); Rs 1,20,000; Rs 10,000(loss); Rs 3,00,000 and Rs 3,40,000 respectively. C does not bring his share of goodwill in cash.1. What was the sacrificing ratio of A and B? (a)1:1 (b) 3:10 (c) 3:2 (d)2:1 2. What was the amount of firm’s goodwill? (a) Rs 84,000 (b) Rs 1,40,000 (c) Rs 1,64,000 (d) Rs 2,80,000 3. What was C’s share of goodwill? (a) Rs 84,000 (b) Rs 1,40,000 (c) Rs 1,64,000 (d) Rs 2,80,000 4. Name the account which will be debited for adjustment of goodwill. (a)A’s and B’s capital a/c (b) C’s capital a/c (c) cash account (d) premium and goodwill