Match List-I with List-IIList-I (Name of ratios)List-II (used for)(A) old ratio(I) distribution of premium for goodwill(B) new ratio(II) for adjustment of goodwill in death of partner(C) sacrificing ratio(III) sharing revaluation profits(D) gaining ratio(IV) sharing future profitsChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
The correct matching is determined as follows:(A) Old ratio: Used for sharing accumulated profits/losses and revaluation profits (III)(B) New ratio: Used by the continuing/remaining partners for sharing future profits (IV)(C) Sacrificing ratio: Used for the distribution of premium for goodwill brought by a new partner (I)(D) Gaining ratio: Used for the adjustment of goodwill upon the retirement or death of a partner (II)Therefore, the correct sequence is (A) - (III), (B) - (IV), (C) - (I), (D) - (II).