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. 
At the time of admission of a new partner in the partnership firm, sacrificing ratio is calculated. 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) Gaining Ratio.
At the time of retirement of a partner from the partnership firm, the gaining ratio is calculated. When a partner retires from a partnership, the gaining ratio determines how the remaining partners will compensate the retiring partner. As the existing partners will get more profits in future and share the profits and losses in new ratio. The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio. Normally, the continuing partners acquire the share of retiring/deceased partner 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. So, it is prepared at the time of dissolution of the partnership firm.

(D) Death of A Partner- (III) Executor Account.
The final settlement made to the deceased partner's represents the total amount owed to the deceased partner, which would be the ending balance of the capital account after all adjustments. The balance of the capital account is transferred to the executor account which is paid by the firm to the executor of deceased partner or it is transferred to loan account of executor.  So, executor account is made at the time of death of partner not retirement of partner. 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.