Match List-I with List-II.

Choose the correct answer from the options given below:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

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

(A) Admission of a New Partner- (II) Sacrificing Ratio.
The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio. 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.

(B) Retirement of a Partner- (IV) Revaluation of Assets and Liabilities.
At the time of death of a partner there may be some assets which may not have been shown at their current values. Similarly, there may be certain liabilities which have been shown at a value different from the obligation to be met by the firm. Not only that, there may be some unrecorded assets and liabilities which need to be brought into books. 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.

(C) Dissolution of Partnership- (I) Realisation Account.
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 transferred to partner’s capital accounts in their profit sharing ratio.

(D) Death of A Partner- (III) Executors Account.
 Executor account is made at the time of death of a partner to transfer the remaining balance of the deceased partner. The accounting treatment for disposal of amount due to retiring partner and deceased partner is similar with a difference that in case of death of a partner, the amount credited to him/her is transferred to his Executors’ Account and the payment has to be made to him/her.