Match List-I with List-II

List–I	List–II
(A) Existing Goodwill	(I) no entry passed.
(B) Goodwill premium	(II) Calculated on the basis of capital of partners.
(C) Goodwill paid privately	(III) Written off.
(D) Hidden goodwill	(IV) credited to sacrificing partner.

Choose the correct answer from the options given below:

Let me match each concept with its correct treatment:

(A) Existing Goodwill appears in the books when a firm already has goodwill recorded from the past. During reconstitution of partnership (admission, retirement, or death), this existing goodwill must be written off by debiting all partners in their old profit sharing ratio. This ensures that only the new goodwill (if any) is recorded.

Match: (A) → (III)

(B) Goodwill premium is the amount brought by an incoming partner as their share of goodwill (also called premium for goodwill). This amount is distributed among the old partners who sacrifice their profit share, not equally to all partners. The premium is credited to sacrificing partners in their sacrificing ratio as compensation for giving up their share of profits.

Match: (B) → (IV)

(C) Goodwill paid privately occurs when the new partner directly pays goodwill amount to the existing partners outside the firm's books. Since this transaction happens privately between individuals and doesn't involve firm's assets, no entry is passed in the books of the partnership firm.

Match: (C) → (I)

(D) Hidden goodwill arises when goodwill is not explicitly stated but needs to be inferred. This is calculated on the basis of capital of partners - specifically when the new partner's capital determines the total capital of the firm, and goodwill is computed by finding the difference between total capital implied and actual capital contributed.

Match: (D) → (II)

Correct matching: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Option 4 is correct.