Practicing Success
Match List -I with List-II
Choose the correct answer from the options given below : |
A-III, B-I, C-IV, D-II A-II, B-III, C-IV, D-I A-II, B-I, C-IV, D-III A-III, B-I, C-II, D-IV |
A-II, B-I, C-IV, D-III |
The correct answer is option 3- A-II, B-I, C-IV, D-III. * Gaining Ratio- Retirement of a partner. 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. * Sacrificing Ratio- Admission of a partner. When a new partner is admitted to a partnership, the sacrificing ratio is determined. This ratio reflects the extent to which the existing partners are willing to sacrifice their share of profits to accommodate the new partner. Now the old partners got less share in comparison to previous. * Realisation Account- Dissolution of Partnership firm. 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. Hence, all assets (other than cash in hand bank balance and fictitious assets, if any), and all external liabilities are transferred to this account. It also records the sale of assets, and payment of liabilities and realisation expenses. The balance in this account is termed as profit or loss on realisation which is transferred to partners’ capital accounts in the profit sharing ratio. * Profit and Loss Suspense Account- Death of a partner. To account for the deceased partner's share of profits and loss during the interim period in the company's financial records, the following journal entry is recorded: FOR PROFIT- FOR LOSS- |