Explanation:

Let's break it down:

- Original Ratio: A and B share profits and losses in the ratio of 5:3.

- C's Admission: C brings Rs70,000 cash and Rs43,000 for goodwill.

- New Ratio: After C joins, the profit-sharing ratio becomes 7:5:4 among A, B, and C.

- Sacrificing Ratio Calculation:

- A’s New Share = 7/16, Original Share = 5/8

- B’s New Share = 5/16, Original Share = 3/8

- A’s Sacrifice = 5/8 - 7/16 = 3/16

- B’s Sacrifice = 3/8 - 5/16 = 1/16

- Sacrificing Ratio = A:B = 3:1

Correct Answer:

- Option 1: 3:1