Match the LIST-I with LIST-IILIST-ILIST-IIA.Sacrificing ratioI.New ra…

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

The first two items are ratios used on reconstitution, and the last two are revaluation entries.

(A) Sacrificing ratio — this matches (III) Old ratio - New ratio. It measures the share of profit a partner gives up, so the new share is taken from the old.

(B) Gaining ratio — this matches (I) New ratio - Old ratio. It measures the share a continuing partner gains from the outgoing partner, so the old share is taken from the new.

(C) Undervaluation of Stock — this matches (II) Credit Side of Revaluation A/c. Stock shown below its true value is raised to that value; the increase in an asset is a gain, and a gain is credited to the Revaluation A/c.

(D) Overvaluation of Stock — this matches (IV) Debit Side of Revaluation A/c. Stock shown above its true value is brought down; the decrease in an asset is a loss, and a loss is debited to the Revaluation A/c.