A and B were partners sharing profits and losses in the ratio of 4 ∶ 3. On 1st April, 2021 they admitted C as a new partner and new ratio was decided as 3 ∶ 3 ∶ 1. Goodwill of the firm was valued as ₹7,00,000. C brought his required share of goodwill premium in cash. Cs share of goodwill credited to A and B Capital Accounts by:
1
₹1,00,000 and Nil respectively
2
₹50,000 and ₹50,000 respectively
3
₹4,00,000 and ₹3,00,000 respectively
4
₹ Nil and ₹1,00,000 respectively