Match the following list 1 with list 2 related with partnership.
| LIST 1 | LIST 2 |
| A) Sacrificing ratio | I) Death of the partner |
| B) Executor Account | II) Admission of new partner |
| C) New profit sharing ratio | III) Dissolution of firm |
| D) Realisation Account | IV) Retirement of partner |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-II, B-I, C-IV, D-III.
| LIST 1 | LIST 2 |
| A) Sacrificing ratio | II) Admission of new partner |
| B) Executor Account | I) Death of the partner |
| C) New profit sharing ratio | IV) Retirement of partner |
| D) Realisation Account | III) Dissolution of firm |
* Sacrificing ratio is calculated at the time of admission of new partner. In this ratio new partner will compensate the existing partners.
* Executor account is made at the death of a partner.
* New profit sharing ratio is calculated at the time of both admission and retirement or death of a partner. As gaining ratio is calculated at the time of retirement so new profit ratio is related with retirement here.
* Realisation account is made at the time of dissolution of partnership firm.