Match the following lists.

Choose the correct answer from the options given below.

A-II, B-III, C-IV, D-I

The correct answer is option 3- A-II, B-III, C-IV, D-I.

* Admission of partner- The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio. The sacrifice leads to loss in profit sharing ratio.

* Death of partner- The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called the gaining ratio. So, death of partner leads to gain in profit sharing ratio.

* Accumulated losses- Sometimes, the Balance Sheet of a firm may show 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 losses, if any. These accumulated losses belong to all the partners and should be transferred to the capital accounts of all partners in their old profit sharing ratio. The journal entry for transfer of accumulated losses
All Partners’ Capital A/c’s (Individually) Dr.
   To Profit and Loss A/c
(Accumulated loss transferred to all partners’ capital accounts in their old profit-sharing ratio)

* Accumulated profits- Sometimes, the Balance Sheet of a firm may show accumulated profits in the form of general reserve. The retiring/deceased partner is entitled to his/her share in the accumulated profits if any. These accumulated profits belong to all the partners and should be transferred to the capital accounts of all partners in their old profit sharing ratio. The following journal entries are recorded for the transfer of accumulated profits (reserves),
Reserves A/c Dr.
    To All Partners’ Capital A/c’s (Individually)
(Reserves transferred to all partners’ capital account’s in old profit sharing ratio).