The correct answer is option 2- (A)-(III), (B)-(IV), (C)-(I), (D)-(II).
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List - I
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List - II
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(A) Accumulated Profits/Losses
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(III) Old Ratio
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(B) Share of goodwill at the time of admission of a partner
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(IV) Sacrificing Ratio
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(C) Division of profits after admission of a partner
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(I) New Ratio
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(D) Share of goodwill at the time of retirement/death of a partner
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(II) Gaining Ratio
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(A) Accumulated Profits/Losses- (III) Old Ratio.
At the time reconsititution of the firm, reserves are distributed between old or existing partners in their old ratio. Sometimes a firm may have accumulated profits not yet transferred to capital accounts of the partners. These are usually in the form of general reserve, reserve and/or Profit and Loss Account. The new partner is not entitled to have any share in such accumulated profits. These are distributed among the partners (existing partners) by transferring it to their capital or current accounts in old profit sharing ratio. Similarly, if there are some accumulated losses in the form of a debit balance of profit and loss account and/or deferred revenue expenditure appearing in the balance sheet of the firm, they are also debited to partners capital or current A/c.
(B) Share of goodwill at the time of admission of a partner- (IV) Sacrificing Ratio.
The existing partners decide how the profits will be shared in the future. The sacrificing ratio is calculated to determine how much profit the old partners are giving up for the new partner. The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio.
(C) Division of profits after admission of a partner- (I) New Ratio.
When a new partner is admitted into a firm, the existing partners agree to sacrifice a part of their profit share to give to the new partner. After this, all partners (old + new) will share future profits and losses in a new agreed ratio, called the New Profit Sharing Ratio.
(D) Share of goodwill at the time of retirement/death of a partner- (II) Gaining Ratio.
The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio. The gaining ratio helps in calculating how much goodwill compensation each remaining partner must pay to the outgoing partner. | 
