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) Gaining Ratio

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 event in List I brings in its own ratio or account: who gives up a share, who gains a share, how the firm is wound up, and who receives a dead partner’s dues.

(A) Admission of a New Partner — this matches (II) Sacrificing ratio. The old partners give up part of their share in favour of the newcomer, and the ratio of what they give up is the sacrificing ratio.

(B) Retirement of a Partner — this matches (IV) Gaining Ratio. The continuing partners take over the retiring partner’s share, and the ratio of what they gain is the gaining ratio.

(C) Dissolution of Partnership — this matches (I) Realisation Account. On dissolution the assets are sold and the 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’ account and paid to them.

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):
Gaining Ratio – “The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining 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):
Disposal of Amount Due to Retiring Partner – “… It may noted that 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. This shall be taken up later in this chapter.”