Partnership Questions

Which among the following is NOT true about a Partnership?

On $R$ 's retirement, the amount payable to him after all adjustments works out to be $\text{Rs. }60,000$ but the remaining partners $P$ and $Q$ agreed to pay him $\text{Rs. }75,000$ in full settlement of his claim. Identify the term which represents the $\text{Rs. }15,000$ extra that is paid to $R$.

If the premium for goodwill is paid to the old partners directly / privately by the new partner, what journal entry will be recorded in the books of Partnership Firm :-

Identify the INCORRECT journal entry configuration related to the Revaluation of Assets and Liabilities of a partnership firm:

Arrange the steps of the method "Capitalization of Average Profits" for the calculation of goodwill in the correct sequence:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows: $\text{Average Profits}\times \frac{100}{\text{Normal Rate of Return}}$ (B) Ascertain the average profits based on the past few years' performance.(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.Choose the correct answer from the options given below:

On the dissolution of the partnership firm the amount realised from sale of assets shall be applied in following order:(a) Distributing the amount left among the partners in their profit sharing ratio(b) Paying amount due to partner on account of loan advanced by him(c) Paying amount due to the creditors(d) Paying partners' capital account balancesChoose the correct answer from the options given below:

When a firm is dissolved, the Balance of Investment Account and Balance of Investment Fluctuation Fund Account, shown by Firm's Balance Sheet are transferred into _________ and into _________ respectively:-

Saloni and Srishti are partners. Their capital accounts as on April 01, 2019, showed balances of $\text{Rs. }2,00,000$ and $\text{Rs. }3,00,000$ respectively. On July 01, 2019, Saloni introduced additional capital of $\text{Rs. }50,000$. On October 01, 2019, Saloni withdrew $\text{Rs. }30,000$ from her capital. Interest is allowed @ $8\%$ p.a. Calculate the interest payable on capital to Saloni during the financial year 2019–2020.

The profits for five years of a firm are as follows:Year 2013: $\text{Rs. }4,00,000$ Year 2014: $\text{Rs. }3,98,000$ Year 2015: $\text{Rs. }4,50,000$ Year 2016: $\text{Rs. }4,45,000$ Year 2017: $\text{Rs. }5,00,000$ Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

Identify that account to which share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his/her death (assuming no change in profit sharing ratio of remaining partners).

Himanshu withdrew $\text{Rs. }2,500$ at the end of each month. The partnership deed provides for charging of interest on drawings $@12\%\text{ p.a.}$ Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

Which combination of the given statements is correct regarding the dissolution of a partnership and a firm?(A) Dissolution of a partnership is fundamentally different from the dissolution of a firm.(B) A partnership is dissolved when a partner dies.(C) A firm is dissolved when all partners give their consent to dissolve it.(D) A firm is compulsorily dissolved when any single partner decides to retire.Choose the correct answer from the options given below:

Which factor does not affect the value of goodwill?

Case StudyRead the following information to answer.Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was Rs. $2,00,000$ and Rs. $1,50,000$ respectively.The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was Rs. $2,20,000$. Ram is allowed a salary of Rs. $2,000$ per quarter and interest on capital @ $10\%$ p.a.Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for $\frac{1}{5}$ share in profits. It was agreed that Sanjeev will bring Rs. $1,00,000$ as capital and Rs. $50,000$ as his share of Goodwill. It was decided that he will give Rs. $1,00,000$ as loan to the firm for 3 years.The amount of distributed profits of both the partner's will be:

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

When realization expenses are paid by the firm on behalf of a partner (who was explicitly given the responsibility to bear them), which account must be debited in the firm's books?

Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same?

Match List I with List II regarding accounting treatments:List IA. Transfer of accumulated profitsB. Unrecorded asset sold on dissolution of firmC. Manager's commissionD. Partner's commissionList III. Realisation AccountII. Profit and Loss AccountIII. Profit and Loss Appropriation AccountIV. Partner's Capital AccountChoose the correct answer from the options given below:

Which account is debited for Realisation expenses paid?

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

The minimum guaranteed amount shall be paid to the new partner when his share of profit as per the profit sharing ratio:

If average capital employed in a firm is Rs. 15,00,000 and fair rate of return in the same industry was 10% (Wait, source implies calculation gives specific normal profit, let's use 8%). Fair rate of return was 8%. Goodwill was valued at Rs. 90,000 on the basis of three times of super profit. The Average Profit of the firm is?

Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending March 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:

A, B and C are partners in a firm. If D is admitted as a new partner, what will be its affect?

In case of the dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. Arrange in the correct manner and order the assets of the firm, including any sum contributed by the partners to make up for deficiencies of capital:(A) In paying to each partner proportionately what is due to him on account of capital(B) In paying the debts of the firm to the third parties(C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan)(D) The residue, if any, shall be divided among the partners in their profit sharing ratioChoose the correct answer from the options given below:

Match List I with List II regarding partnership parameters:List IA. Interest on capitalB. Gaining RatioC. Sacrificing ratioD. Revaluation of Assets and LiabilitiesList III. Admission of partnerII. Profit/Loss in the old profit sharing ratioIII. Continuing partnersIV. When partnership deed specifically provides for itChoose the correct answer from the options given below:

Under which Section & Act, the Central Government is empowered to prescribe a maximum number of partners in a partnership firm?

The sum due to the retiring partner includes :(A) His share of profits up to the date of retirement.(B) His share of goodwill;(C) His share of accumulated profits ;(D) His share in the gain of revaluation of assets and liabilities;Choose the correct answer from the options given below:

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of $4:3:2$. Nirmal retires and the goodwill is valued at Rs. 72,000. Keshav and Pankaj decided to share future profits and losses in the ratio of $5:3$. Gaining Ratio of Keshav and Pankaj is:

Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be ____

Arrange the following steps for calculating Goodwill under Capitalisation of Average Profits Method in correct sequence:(A). Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets.(B). Compute the value of goodwill by deducting net assets from the capitalised value of average profits.(C). Ascertain the average profits based on the past few years' performance.(D). Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalised value of average profits.Choose the correct answer from the options given below:

A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Determine the new profit sharing ratio

Rohit and Mohit are partners in a firm sharing profits in the ratio of $5:3$. They admitted Bijoy as a new partner for $\frac{1}{7}\text{th}$ share in the profit. The new profit sharing ratio will be $4:2:1$. What will be the sacrificing ratio of Rohit and Mohit?

Based on the following passage, answer questions from 46 to 50:Meena and Tina are partners in a firm sharing profits in the ratio $3:2$. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows:Balance Sheet of Meena and Tina as on March 31, 2017LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital Accounts:Machinery$70,000$ Meena: $90,000$ Investments$50,000$ Tina: $80,000$$1,70,000$ Stock$22,000$ Sundry Creditors$60,000$ Sundry Debtors$1,03,000$ Bills Payable$20,000$ Cash at bank$5,000$ Total$2,50,000$ Total$2,50,000$ The assets and liabilities were disposed of as follows:a. Machinery was given to creditors in full settlement of their account and stock was given to bills payable in full settlement.b. Investments were taken over by Tina at book value. Sundry debtors of book value $\text{Rs. }50,000$ were taken over by Meena at $10\%$ less and remaining debtors realized $\text{Rs. }51,000$.c. Realisation expenses amounted to $\text{Rs. }2,000$.Question: When a creditor accepts an asset whose value is more than the amount due to him in full settlement, he will _______ the excess amount which will be credited to _______ Account.

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited?

Which of the following is correct?The important provision affecting partnership accounting, in the absence of a partnership deed is:

Match List-I with List-II:List-I (Accounting standards / Section of Act)List-II (Issues)(A) AS-3(I) Settlement Of Accounts.(B) AS-26(II) Firm's debt and private debt(C) Section 48 of the Indian partnership Act(III) Cash flow statement.(D) Section 49 of the Indian partnership Act(IV) Treatment of goodwill.Choose the correct answer from the options given below:

From the following information, identify when goodwill is required to be calculated.(a) Admission of a Partner(b) Amalgamation of partnership firms(c) Dissolution of partnership firm(d) Retirement and Death of any partner(e) Preparation of Balance sheetChoose the correct answer from the options given below:

In case of a Fixed Capital Account framework, Interest on Drawings is:

Hemant and Naman are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Samrat on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Samrat brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm?

Rent payable to a partner is a/an:

Based on the passage given for Meena and Tina, answer the question:Identify the exact final total amount realized in cash from Sundry Debtors.

Match List-I with List-II:List-I (Different accounts)List-II (Related transaction)(A) Profit and loss account(I) Dissolution of partnership.(B) Profit and loss appropriation account(II) Dissolution of firm.(C) Revaluation account(III) Interest on loan to partner.(D) Realization account(IV) Transfer to reserve.Choose the correct answer from the options given below:

Match List-I with List-IIList-IList-II(A) Payment of loans due to partners(I) Realisation A/c Dr To Bank A/c(B) For settlement of partners' accounts, in case their capital account shows a debit balance(II) Bank A/c Dr. To loan to partners(C) For settlement of loan by a firm to a partner(III) Bank A/c Dr. To Partner's Capital A/c(D) For settlement of any unrecorded liability(IV) Partner's Loan A/c Dr. To Bank A/cChoose the correct answer from the options given below:

When realization expenses are paid by a partner on behalf of the firm, which account will be credited?

Calculate the amount of adjusted profit for the year ended 31 March 2021 for the purpose of valuation of Goodwill from the following information:Profit for the year ended 31 March 2021: Rs. $80,000$ On 1 July, 2020, a major plant repair was undertaken for Rs. $10,000$ which was charged to Revenue. The said sum is to be capitalised for Goodwill valuation subject to adjustment of depreciation @ $10\%$ p.a. on reducing balance method.

To secure the right to receive a share in the future profits of a partnership firm, a newly admitted partner must bring:

Match List-I with List-IIList-IList-II(A) Compulsory Dissolution(I) Partner becomes insane(B) Dissolution by notice(II) Death of a partner(C) Dissolution by Court(III) Business become illegal(D) Dissolution on certain contingencies(IV) Partnership at willChoose the correct answer from the options given below:

The past average profits of a business work out to $\text{Rs. }20,000$ and it is expected that such profits are likely to continue for another three years. The value of goodwill based on the average profit method will be:

Based on the passage given for Meena and Tina, answer the question:State the correct Journal entry when investments are taken over by partner Tina at their book value of $\text{Rs. }50,000$.

Which of the following statements is true regarding a Revaluation Account?

The steps involved in calculation of Goodwill under Super Profit method are:(A) Calculate the super profits by deducting normal profit from the average profits.(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.(C) Calculate the average profit.(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.Choose the correct sequence of steps from the options given below:

When an unrecorded asset is taken over by a creditor in full settlement of their claim during dissolution, the transaction is:

In the absence of a Partnership deed, partners share profits and losses in:

Match List-I with List-II:List-I (Events)List-II (Result)(A) Termination of business(I) Not Possible In Dissolution Of Partnership.(B) Continuation Of Business(II) Not possible in the dissolution of a firm.(C) Intervention of court(III) Dissolution of firm(D) Continuation of books of accounts(IV) Dissolution of partnership.Choose the correct answer from the options given below:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of A's deficiency of annual fee?

Naveen, Suresh, and Tarun are partners sharing profits and losses in the ratio of $5:3:2$. Tarun retires from the firm, and his share is taken over by Naveen and Suresh in the ratio of $2:1$. Calculate the new profit-sharing ratio.

__________ is/are not true with regard to Limited liability partnership.(A) Separate Legal entity(B) Unlimited liability for one partner(C) Indian Partnership Act, 1932 is applicable(D) Perpetual Succession(E) Unlimited liability of partnersChoose the correct answer from the options given below:

Upon the dissolution of a partnership firm, the amount of a loan taken from a partner by the firm is transferred directly to:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.What is the amount of T's deficiency in profits?

Abhiram and Ragini are partners sharing profits in the ratio of $3:2$. They admit Arun as a new partner for a $\frac{1}{5}\text{th}$ share in the future profits of the firm. Arun acquires this share equally from Abhiram and Ragini. Calculate the new profit-sharing ratio of Abhiram, Ragini, and Arun.

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.What would be the effect of the line "All Debtors are good".

Reconstitution of a partnership firm does not involve:

A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2. Their partnership deed provided the following:(i) Interest on partners’ capital @ 5% p.a.(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for the firm.(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital) and any deficiency on account of this was to be borne by A and V in the ratio of 2:3.During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net profits earned by the firm were Rs. 8,60,000. Partner’s capital on April 01, 2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T - Rs. 2,00,000.In which ratio the deficiency of T will be borne by A & V.

In the case of the Dissolution of partnership firm, which accounts are opened:(A) Realization Account(B) Revaluation Account(C) Partners Capital Account(D) Bank AccountChoose the correct answer from the options given below:

At the time of admission, credit balance of Profit and Loss account appearing in books will be transferred to:

Steps involved in accounting treatment at the time of death/retirement of a partner -(A) Adjustment of capital, if required(B) Preparation of revaluation account, if required(C) Ascertainment of new profit sharing ratio and gaining ratio(D) Settlement of the amounts due to retired / deceased partnerChoose the correct answer from the options given below:

In which of the following cases can a court order the dissolution of a partnership firm?

According to section _________ of the Partnership Act, 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

Anand, Bahadur, and Chander are partners sharing profits equally ($\frac{1}{3}$ each). On Chander's retirement, his entire share is acquired by Anand alone. The gaining percentage of Anand will be:

Rajinder and Surinder are partners in a firm sharing profits in the ratio of $4:1$. On April 15, 2017, they admitted Narender as a new partner. On that date, there was a balance of $\text{Rs. }20,000$ in general reserve and a debit balance of $\text{Rs. }10,000$ in the profit and loss account of the firm. Which among the following statements is correct for transferring profit and loss account?

Match List-I with List-II if the partnership deed is silent regarding the items provided in List-I:List-IList-II(A) Interest on Capital(I) to be shared equally(B) Interest on Loan(II) not charged(C) Interest on Drawings(III) not payable(D) Sharing of Profits(IV) @6% p.a.Choose the correct answer from the options given below:

On dissolution of a partnership firm, the bills payable is transferred to :

Select the entry that is to be made when a creditor accepts an asset in full and final settlement of his account.

After transferring liabilities like creditors and bills payables in the Realization Account, in the absence of any information regarding their payment, such liabilities are treated as:

Which of the following will lead to the dissolution of a partnership firm?

In case of dissolution of a firm, the firm ceases to conduct business and has to settle its accounts. The assets of the firm, including any sum contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:(A) In paying to each partner proportionately what is due to him on account of capital.(B) The residue, if any, shall be divided among the partners in their profit sharing ratio.(C) In paying the debts of the firm to third parties.(D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner loan).Choose the correct answer from the options given below:

How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. $12,25,000$, Expenditure incurred Rs. $10,80,000$, Total estimate Rs. $25,00,000$.

Which of the following will lead to the Reconstitution of a partnership Firm?(A) Admission of a new partner(B) Change in the profit sharing ratio among the existing partners(C) Retirement of an existing partner(D) Death of a partnerChoose the correct answer from the options given below:

Which of the following is NOT one of the recognized methods for the valuation of goodwill?

Which among the following is Not the method of valuation of goodwill:

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.

Unrecorded assets when taken over by a partner are shown in :

Which of the following entries correctly records the withdrawal of excess capital by a partner?

Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of $3:2$. They admitted Daniel as a new partner for $\frac{1}{4}$ share. The new profit sharing ratio between Naveen and Ghanshyam will be $2:1$. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :

Match List I with List II:List IList IIA. Mutual AgencyI. It can be oral or writtenB. AgreementII. Written agreementC. Liability of partnersIII. Partnership concern carried by all or any of them acting for all.D. Partnership deedIV. Joint and unlimitedChoose the correct answer from the options given below:

Naveen, Suresh and Tarun are partners, sharing profits and losses in the ratio of $5:3:2$. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio of $2:1$. Calculate the new share of profit :

If a new partner does not bring his share of goodwill in cash, which of the following adjustment treatments must be carried out?

The profits of the firm for the five years are as follows: YearProfit (Rs.)2012-1320,0002013-1424,0002014-1530,0002015-1625,0002016-1718,000Calculate the value of goodwill on the basis of three years' purchase of weighted average profits based on weights of the last five years as 1, 2, 3, 4 and 5 respectively.

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Increase in Furniture Value}& \text{(I) Credit side of Partner’s Capital A/c}\\ \text{(B) Depreciation on Machinery}& \text{(II) Debit side of Partner’s Capital A/c}\\ \text{(C) General Reserve}& \text{(III) Credit side of Revaluation A/c}\\ \text{(D) Goodwill appearing in Books}& \text{(IV) Debit side of Revaluation A/c}\end{array}$$
Choose the correct answer from the options given below:

Which of the following events takes place in the case of the dissolution of a partnership firm?

Match List I with List II in context of not having partnership deed.LIST IA. Interest on loanB. Interest on drawingsC. SalaryD. Profit sharing ratioLIST III. EqualII. Will not be chargedIII. @ $6\%$ p.a.IV. Will not be allowed/providedChoose the correct answer from the options given below:

As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were Rs. $2,50,000$, subscriptions outstanding on 1-04-2019 Rs. $50,000$, Subscriptions received in advance as on 31-3-2020 are Rs. $30,000$. Subscriptions for the year 2019-20 will be:

The capital accounts of partners will always show a ____ balance under fixed capital account method

Case studyA and B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of Assets and Liabilities on the date of dissolution was:

It was agreed that following transactions will take place :A. A wanted to start the business in sole proprietorship So he took Building and Furniture at $10\%$ less than book value.B. All the debtors proved good except a person C who did not pay Rs. $10,000$.The amount recovered from the debtors is:

A, B and C were partner's in a firm sharing profit and losses in the Ratio of $5:3:2$. They admitted D into partnership for $1/5$ share of profit which he takes equally from A and B. D brought sufficient amount of goodwill in cash. Capital brought in by is Rs. $50,000$. On the date of admission the Balance Sheet of A, B and C was as follows :Balance Sheet as on 31st March, 2021

Goodwill is to be valued at $3$ years purchase of average profit of last $4$ years which were Rs. $60,000$ (2017-18), Rs. $60,000$ (18-19), Rs. $30,000$ (19-20). On revaluation it was found that all debtors are good.From the above calculate amount of Goodwill :

A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

Excess value of net assets over purchase consideration at the time of purchase of business is credited to:

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:

Match List-I with List-II:List-IList-II(A) Compulsory Dissolution(I) A partner persistently commits breach of partnership agreement.(B) Happening of contingencies(II) Death of a partner(C) Dissolution by Court(III) According to contract between the partners.(D) Dissolution by agreement(IV) Business becomes illegalChoose the correct answer from the options given below: