Question

Match List-I with List-II

List-I	List-II
(A) Gaining Ratio	(I) Average Profit X 100/Normal rate of return
(B) Value of Goodwill	(II) Old Ratio - New Ratio
(C) Sacrificing Ratio	(III) Super Profit X 100/Normal rate of return
(D) Capitalised Value of average profit	(IV) New Ratio - Old Ratio

Choose the correct answer from the options given below:

• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
• (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
• (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

Hint:

Gaining = New - Old; Sacrificing = Old - New.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
These are standard formulae used in retirement and admission of a partner.

Step 2: Match (A) Gaining Ratio:
Gaining share = New share - Old share. So (A) matches (IV) New Ratio - Old Ratio.

Step 3: Match (B) Value of Goodwill:
Under the capitalisation of super profit method, Goodwill = Super Profit x 100 / Normal Rate of Return. So (B) matches (III).

Step 4: Match (C) Sacrificing Ratio:
Sacrificing share = Old share - New share. So (C) matches (II) Old Ratio - New Ratio.

Step 5: Match (D) Capitalised Value of average profit:
Capitalised value = Average Profit x 100 / Normal Rate of Return. So (D) matches (I).

Step 6: Pick the option:
The pairs are A-IV, B-III, C-II, D-I. This is option (2).

Final Answer:
The correct matching is (A)-(IV), (B)-(III), (C)-(II), (D)-(I). \[ \boxed{\text{(A)-(IV), (B)-(III), (C)-(II), (D)-(I) (Option 2)}} \]