Match List-I with List-II
| LIST-I | LIST-II | ||
|---|---|---|---|
| (A) | Goodwill | (I) | Amount brought by new partner to compensate old partners |
| (B) | Sacrificing ratio | (II) | Advantage of reputation, enabling firm to earn super profits |
| (C) | New profit sharing ratio | (III) | Ratio in which old partner give up their share |
| (D) | Premium for Goodwill | (IV) | Ratio after reconstitution of partnership |
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)
All four terms come up when a new partner joins a firm that already has a name in the market.
(A) Goodwill — this matches (II) Advantage of reputation, enabling firm to earn super profits. A well-established business builds up a good name and wide connections, which let it earn more than a newly set up business; the money value of that advantage is goodwill.
(B) Sacrificing ratio — this matches (III) Ratio in which old partner give up their share. It is the ratio in which the old partners give up part of their profit share in favour of the new partner.
(C) New profit sharing ratio — this matches (IV) Ratio after reconstitution of partnership. It is the ratio in which all the partners, the new one included, share profits after the change.
(D) Premium for Goodwill — this matches (I) Amount brought by new partner to compensate old partners. It is the extra amount the new partner pays for the share of super profits the old partners give up.
NCERT (2026-27 edition): NCERT (2026-27 edition): |