Match List I with List II LIST I LIST II A.Gaining Ratio I. Admission of a partner B.Sacrificing Ratio II.Retirement of a partner C.Realisation Account III.Death of a partner D.Profit and Loss Suspense Account IV.Dissolution of Partnership firm Choose the correct answer from the options given below:

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A-III. B-I, C-IV, D-II

A-II, B-III, C-IV, D-I

A-II, B-I, C-IV, D-III

A-III, B-I, C-II, D-IV

Correct Answer

A-II, B-I, C-IV, D-III

Detailed Explanation

1.The gaining ratio is a concept used in partnership accounting. It represents the change in the profit-sharing ratio among the existing partners when a new partner is admitted to the partnership firm or when the existing partners' profit-sharing ratios are modified. The gaining ratio is calculated to determine how the profits and losses will be distributed among the existing partners after the change in the partnership agreement.

The gaining ratio is typically calculated as follows:

Gaining Ratio = New Profit-Sharing Ratio of Existing Partners - Old Profit-Sharing Ratio of Existing Partners

2.The sacrificing ratio is a concept used in partnership accounting. It represents the change in the profit-sharing ratio among the existing partners when a new partner is admitted to the partnership firm or when the existing partners' profit-sharing ratios are modified. The sacrificing ratio is calculated to determine how the profits and losses will be distributed among the existing partners after the change in the partnership agreement.

The sacrificing ratio is typically calculated as follows:

Sacrificing Ratio = Old Profit-Sharing Ratio of Existing Partners - New Profit-Sharing Ratio of Existing Partners

3.A Realization Account is an important component of the final accounts prepared during the dissolution of a partnership firm. It is used to record the various transactions and adjustments related to the sale of the firm's assets and settlement of liabilities when the partnership is being dissolved. The Realization Account helps in calculating the profit or loss on the realization of assets and the distribution of this profit or the settlement of any losses among the partners.

4.A Profit and Loss Suspense Account, also known as a P&L Suspense Account, is an accounting tool used in situations where the financial statements do not balance due to errors or discrepancies in the profit and loss accounts. This account is temporary and serves as a way to rectify and correct discrepancies and to bring the financial statements into balance.