Partnership

Accounting

Medium

common

Match List-I with List-II

List-I List-II
(A) Gaining Ratio (I) New Share - old Share.
(B) Sacrificing Ratio (II) Old Share - New Share.
(C) Admission of Partner (III) Partner may be paid amount more that what has actually due to him for hidden goodwill share.
(D) Retirement of Partner (IV) Partner may or may not bring his share of goodwill in cash.

Choose the correct answer from the options given below:

List-I	List-II
(A) Gaining Ratio	(I) New Share - old Share.
(B) Sacrificing Ratio	(II) Old Share - New Share.
(C) Admission of Partner	(III) Partner may be paid amount more that what has actually due to him for hidden goodwill share.
(D) Retirement of Partner	(IV) Partner may or may not bring his share of goodwill in cash.

(A) - (i), (B) - (ii), (C) - (iii), (D) - (iv)

(A) - (i), (B) - (ii), (C) - (ii), (D) - (iv)

(A) - (i), (B) - (ii), (C) - (iv), (D) - (iii)

(A) - (iii), (B) - (iv), (C) - (i), (D) - (ii)

✅ Correct Option: 3

Gaining Ratio is calculated when a partner retires or dies. The remaining partners gain the share of the outgoing partner. The formula is:

Gaining Ratio = New Share - Old Share

This matches with (I).

Sacrificing Ratio is calculated when a new partner is admitted. The existing partners sacrifice a portion of their share in favor of the incoming partner. The formula is:

Sacrificing Ratio = Old Share - New Share

This matches with (II).

Admission of Partner involves goodwill treatment. When a new partner joins, there is flexibility in how goodwill is handled. The incoming partner may bring their share of goodwill in cash, or it may be adjusted through capital accounts, or sometimes even waived off depending on the partnership agreement.

This matches with (IV).

Retirement of Partner requires settling all dues of the outgoing partner. Often, firms have unrecorded or hidden goodwill (not shown in books but having actual value in market). To compensate the retiring partner fairly, they may be paid an amount more than what is actually shown in the books to account for their share in this hidden goodwill.

This matches with (III).

Therefore, the correct matching is:

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

Correct Answer: Option 3

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2025: 22 May Shift 1

When the date of drawing is not specified, interest on drawings is calculated for

2025: 4 June Shift 2

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Amitabh has also given a Loan on April 01, 2024 of Rs. 50,000 to the firm without any agreement.

Calculate Interest on Amitabh's Loan assuming books are closing on 31st March, 2025.

2022: 15 July Shift 2

When the fixed amount is withdrawn at the end of each quarter, interest on drawing will be calculated for _______

2022: 16 July Shift 2

Vivek, Virat and Vineet were partners in a firm. Their capital accounts as on April 1, 2019 showed a balance of Rs.4,00,000, Rs.6,00,000 and Rs.8,00,000 respectively. On 1st July 2019 Virat introduced additional capital of Rs.1,00,000 while Vineet withdraw 50,000 on 31 Oct 2019 from their capitals. Interest on capital is allowed @8%. Calculate Interest on capital to be given to each partner.

2026: 13 May Shift 1

At the time of change in profit sharing ratio, what will be the impact of reduction in the value of investment by 20% assuming existing book value of investments in balance sheet as Rs. 2,40,000 and there is an investment fluctuation reserve existing in balance sheet at Rs. 30,000?

Solution

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