Match List-I with List-II. LIST I LIST II (A) Admission of a New Part…

Match List-I with List-II.

LIST I	LIST II
(A) Admission of a New Partner	(I) Realisation Account
(B) Retirement of a Partner	(II) Sacrificing Ratio
(C) Dissolution of Partnership	(III) Executors Account
(D) Death of A Partner	(IV) Revaluation of Assets and Liabilities

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Each way of changing or ending a partnership has its own working tool or account.

(A) Admission of a New Partner — this matches (II) Sacrificing Ratio. The old partners give up part of their share to the newcomer, and his premium for goodwill is shared in the ratio of that sacrifice.

(B) Retirement of a Partner — this matches (IV) Revaluation of Assets and Liabilities. Assets and liabilities are revalued so that the retiring partner gets his share of any gain or bears his share of any loss.

(C) Dissolution of Partnership — this matches (I) Realisation Account. On dissolution the assets are sold and liabilities paid through the Realisation Account, which shows the profit or loss on realisation.

(D) Death of A Partner — this matches (III) Executors Account. The amount due to the deceased partner is transferred to his executors and paid to them.

NCERT (2026-27 edition):
Sacrificing Ratio – “… As stated earlier, the new partner is required to compensate the old partner’s for their loss of share in the super profits of the firm for which he brings in an additional amount as premium for goodwill. This amount is shared by the existing partners in the ratio in which they forgo their shares in favour of the new partner which is called sacrificing ratio.”

NCERT (2026-27 edition):
Adjustment for Revaluation of Assets and Liabilities – “… As learnt in case of admission of a partner, a Revaluation Account is prepared in order to ascertain net gain (loss) on revaluation of assets and/or liabilities and bringing unrecorded items into firm’s books and the same is transferred to the capital account of all partners including retiring/deceased partners in their old profit sharing ratio.”

NCERT (2026-27 edition):
Accounting Treatment – “When the firm is dissolved, its books of account are to be closed and the profit or loss arising on realisation of its assets and discharge of liabilities is to be computed. For this purpose, a Realisation Account is prepared to ascertain the net effect (profit or loss) of realisation of assets and payment of liabilities which may be is transferred to partner’s capital accounts in their profit sharing ratio.”

NCERT (2026-27 edition):
Death of a Partner – “As stated earlier, the accounting treatment in the event of death of a partner is similar to that in case of retirement of a partner, and that in case of death of a partner his claim is transferred to his executors and settled in the same manner as that of the retired partner.”