Match List -I with List-II List I List II A. Gaining Ratio I. Admissi…

Match List -I with List-II

List I	List II
A. Gaining Ratio	I. Admission of a partner
B. Sacrificing Ratio	II. Retirement of a partner
C. Realisation Account	III. Death of a partner
D. Profit and Loss Suspense Account	IV. Dissolution of Partnership firm

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → A-II, B-I, C-IV, D-III

Each item belongs to the event in which it is calculated or prepared.

(A) Gaining Ratio — this matches (II) Retirement of a partner. The continuing partners gain the share of the retiring partner.
(B) Sacrificing Ratio — this matches (I) Admission of a partner. The old partners give up part of their share to the new partner.
(C) Realisation Account — this matches (IV) Dissolution of Partnership firm. It records the sale of assets and payment of liabilities when the firm is closed.
(D) Profit and Loss Suspense Account — this matches (III) Death of a partner. It brings the deceased partner’s share of profit up to the date of death into the books.

NCERT (2026-27 edition):
Gaining Ratio – “The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio.”

NCERT (2026-27 edition):
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.”

NCERT (2026-27 edition):
Accounting Treatment – “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 is transferred to partner’s capital accounts in their profit sharing ratio.”

NCERT (2026-27 edition):
Death of a Partner

Extract from the NCERT textbook