Amit and Rijith are equal partners started the business of preparation and supplying sweets through home delivery at a production cum show-room ‘Express Sweets’ at Bangalore. They wanted to extend their business operation to Hyderabad. Due to some personal reasons Rijith can’t contribute additional capital for the expansion of the business. So Rijith introduced his friend Kamal to Amit and he is ready to invest in their business. They decided to share the future profits in the ratio of 5:3:2.Kamal brought ₹1, 00,000 as capital and his share of goodwill in cash. The goodwill of the firm is valued at 2 years purchase of previous 3 years profit. Profit for the year ended 2018 and 2019 were ₹ 1, 40,000 and ₹2, 00,000 respectively.Balance Sheet as on 31-03-2020 as followsBased on above details answer the following:1. What will be the ratio of new Partner Kamal a) 2/10 b) 5/10 c) 3/10 d) ½ 2. What is the amount of firm’s goodwill? a) 2, 00,000 b) 4, 00,000 c) 3, 40,000 d) 6, 00,00 3. What is the amount of premium brought in by Kamal a) 1,60,000 b) 80,000 c) 40,000 d) 2,00,000 4. What is the treatment of Profit & Loss A/c shown in the Balance Sheet? a) Distributed among all partners in new profit sharing ratio. b) Distributed among old partners in their new ratio. c) Distributed among old partners in their old ratio. d) Transferred to revaluation a/c.