Match List-I with List-II. LIST I LIST II (A) Gaining Ratio (I) An ad…

Match List-I with List-II.

LIST I	LIST II
(A) Gaining Ratio	(I) An advantage of good name, reputation and wide business connections
(B) New Profit Sharing Ratio	(II) The ratio in which the continuing partners have acquired the share from the retiring/deceased partner
(C) Sacrificing Ratio	(III) The ratio in which the remaining partners will share future profits after the retirement or death of any partner
(D) Goodwill	(IV) The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

Each term of List-I belongs to one change in the firm: admission, retirement or death, or the firm’s reputation itself.

(A) Gaining Ratio — this matches (II). On retirement or death the continuing partners acquire the outgoing partner’s share, and the ratio of their gain is the gaining ratio.

(B) New Profit Sharing Ratio — this matches (III). It is the ratio in which the remaining partners share future profits after a partner leaves.

(C) Sacrificing Ratio — this matches (IV). On admission the old partners give up part of their share for the incoming partner.

(D) Goodwill — this matches (I). A well-established business gains an advantage from its good name, reputation and business connections, which helps it earn more profits.

NCERT (2026-27 edition):
Terms Introduced in the Chapter – “… 2. Gaining Ratio: Gaining ratio is the ratio in which the continuing partners have acquired the share from the retiring deceased partner.”

NCERT (2026-27 edition):
New Profit Sharing Ratio – “New profit sharing ratio is the ratio in which the remaining partners will share future profits after the retirement or death of any partner.”

NCERT (2026-27 edition):
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.”

NCERT (2026-27 edition):
Meaning of Goodwill – “Over a period of time, a well-established business develops an advantage of good name, reputation and wide business connections.”