Match List - I with List - II. List - I List - II (A) Deceased Partne… | Accountancy Part A CUET question

Match List - I with List - II.

List - I	List - II
(A) Deceased Partner's Capital A/c	(I) Written off in profit sharing ratio
(B) General Reserve	(II) Partner's Loan A/c
(C) Retiring Partner's Capital A/c	(III) Executor's Account
(D) Existing Goodwill	(IV) Distributed in profit sharing ratio

Choose the correct answer from below.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

(A) Deceased Partner's Capital A/c — this matches (III) Executor's Account. The amount due to a deceased partner is transferred to his executors.

(B) General Reserve — this matches (IV) Distributed in profit sharing ratio. Accumulated profits belong to all partners in the old ratio.

(C) Retiring Partner's Capital A/c — this matches (II) Partner's Loan A/c. An amount not paid at once is transferred to his loan account.

(D) Existing Goodwill — this matches (I) Written off in profit sharing ratio. Goodwill already in the books is written off among all partners in the old ratio.

NCERT (2026-27 edition):
Disposal of Amount Due to Retiring Partner – “… It may noted that the accounting treatment for disposal of amount due to retiring partner and deceased partner is similar with a difference that in case of death of a partner, the amount credited to him/her is transferred to his Executors’ Account and the payment has to be made to him/her.”

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):
Disposal of Amount Due to Retiring Partner

Extract from the NCERT textbook

NCERT (2026-27 edition):
Summary – “… 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. If goodwill already appears in the books, it will be written off by debiting all partner’s capital account in their old profit sharing ratio.”