Match List-I with List-II regarding the core accounting metrics and concepts across various partnership events:List-I (Accounting Metrics)List-II (Partnership Event)(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 PartnerChoose the correct answer from the choices given below:
- A(A) - (III), (B) - (II), (C) - (I), (D) - (IV)
- B(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- C(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's match the items based on standard partnership accounting rules:Sacrificing Ratio (A): Calculated during the Admission of a New Partner (II) to determine how existing partners share the premium for goodwill.Gaining Ratio (B): Used during the Retirement of a Partner (III) to record the acquisition of the outgoing partner's profit share.Executors Account (C): Opened upon the Death of a Partner (IV) to record the total amount due to the deceased partner's legal heirs.Realisation Account (D): Prepared during the final Dissolution of Partnership/Firm (I) to close books of accounts and settle assets/liabilities.Thus, the correct matching sequence is (A) - (II), (B) - (III), (C) - (IV), (D) - (I).