Match List-I with List-II:List-IList-II(A) Gaining Ratio(I) An advantage of good name, reputation and wide business connections.(B) New Profit Sharing Ratio(II) The ratio in which the continuing partners have acquired the share from the retiring/deceased partner.(C) Sacrificing Ratio(III) The ratio in which the remaining partners will share future profits after the retirement or death of any partner.(D) Goodwill(IV) The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner.Choose the correct answer from the options given below:
- A(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- B(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
- C(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Analyzing the standard definitions of partnership adjustments:(A) Gaining Ratio: The proportion in which continuing partners acquire the profit share of a retiring or deceased partner (II)(B) New Profit Sharing Ratio: The final ratio in which remaining partners share future profits post-retirement/death (III)(C) Sacrificing Ratio: The ratio in which old partners surrender a portion of their profit share in favor of a newly admitted partner (IV)(D) Goodwill: The monetary value representing commercial advantage, business connections, and reputation (I)Thus, the accurate match is (A) - (II), (B) - (III), (C) - (IV), (D) - (I).