Match the following-

 Choose the correct answer from the options given below.

A-IV, B-III, C-II, D-I

The correct answer is option 3- A-IV, B-III, C-II, D-I.

* Gaining ratio- The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio. Gaining share of Continuing Partner = New share – Old share

* 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. The sacrifice by a partner is equal to : Old Share of Profit – New Share of Profit

* Change in value of assets- At the time of admission of a new partner, or retirement/death of old partner, it is always desirable to ascertain whether the assets of the firm are shown in books at their current values. In case the assets are overstated or understated, these are revalued. Similarly, a reassessment of the liabilities is also done so that these are brought in the books at their correct values. At times there may also be some unrecorded assets and liabilities of the firm. These also have to be brought into the books of the firm. For this purpose the firm has to prepare the Revaluation Account.

* Change in profit sharing ratio- Dissolution of partnership changes the existing relationship between partners but the firm may continue its business. Dissolution of partnership can take place in various forms like admission of new partner, retirement of old partner, death of a partner, change in profit sharing ratio among the existing partners.