Match List – I with List – II. List - I List - II (A) Accumulated Pro… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Accumulated Profits/Losses	(I) New Ratio
(B) Share of goodwill at the time of admission of a partner	(II) Gaining Ratio
(C) Division of profits after admission of a partner	(III) Old Ratio
(D) Share of goodwill at the time of retirement/death of a partner	(IV) Sacrificing Ratio

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 2

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

Each item is settled in the ratio of the partners who earned it, gave it up or gained it.

(A) Accumulated Profits/Losses — this matches (III) Old Ratio. They were earned before the change, so they go to the old partners in the old ratio.

(B) Share of goodwill at the time of admission of a partner — this matches (IV) Sacrificing Ratio. The new partner’s premium goes to the old partners in the ratio of their sacrifice.

(C) Division of profits after admission of a partner — this matches (I) New Ratio. Future profits of the reconstituted firm are shared in the new ratio.

(D) Share of goodwill at the time of retirement/death of a partner — this matches (II) Gaining Ratio. The continuing partners pay the outgoing partner in the ratio of their gain.

NCERT (2026-27 edition):
Adjustment of Accumulated Profits and Losses – “Sometimes, the Balance Sheet of a firm may show accumulated profits in the form of general reserve and/on accumulated losses in the form of profit and loss account debit balance. The retiring/deceased partner is entitled to his/her share in the accumulated profits and is also liable to share the accumulated losses, if any. These accumulated profits or losses belong to all the partners and should be transferred to the capital accounts of all partners in their old profit sharing ratio.”

NCERT (2026-27 edition):
Sacrificing Ratio – “… As stated earlier, 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.”

NCERT (2026-27 edition):
Determining the new profit sharing ratio – “… The new partner acquires his share in profits from the old partners’. This reduces the old partners’ share in profits. Hence, the problem of determining the new profit sharing ratio simply involves the determination of old partners’ new share in the profits of the reconstituted firm.”

NCERT (2026-27 edition):
Treatment of Goodwill – “… The basic rule is that gaining partner(s) shared compensate the sacrificing partner to the extent of their gain for the respective share of goodwill.”