Match List-I with List-II List-I List-II (A) Sacrificing ratio (I) Di…

Match List-I with List-II

List-I	List-II
(A) Sacrificing ratio	(I) Dissolution of Partnership
(B) Gaining Ratio	(II) Admission of a New Partner
(C) Executors Account	(III) Retirement of a Partner
(D) Realisation Account	(IV) Death of a Partner

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

Each change in a partnership brings its own ratio or account into use: who gives up a share, who takes over a share, who receives a dead partner’s dues, and how the firm’s assets are wound up.

(A) Sacrificing ratio — this matches (II) Admission of a New Partner. The old partners give up part of their shares to the incoming partner, and the ratio of that sacrifice decides how they share his premium for goodwill.

(B) Gaining Ratio — this matches (III) Retirement of a Partner. The continuing partners take over the retiring partner’s share, and the ratio of their gain decides how they compensate him.

(C) Executors Account — this matches (IV) Death of a Partner. The amount due to the deceased partner is transferred to his executors’ account and paid to them.

(D) Realisation Account — this matches (I) Dissolution of Partnership. When the firm is wound up, a Realisation Account is prepared to find the profit or loss on selling the assets and paying the liabilities.

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):
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):
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. This shall be taken up later in this chapter.”

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.”