Match List-I with List-II

List-I	List-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:

Gaining Ratio is calculated when a partner retires or dies. The remaining partners acquire the outgoing partner's share in a certain proportion. This ratio represents how much each continuing partner's share has increased.

Formula: Gaining Ratio = New Ratio - Old Ratio

Therefore, (A) matches with (II).

New Profit Sharing Ratio is the ratio in which partners will share profits and losses after any change in the partnership (admission, retirement, or death). It represents the revised distribution of profits among the remaining or reconstituted partners.

Therefore, (B) matches with (III).

Sacrificing Ratio is calculated when a new partner is admitted. The existing partners give up a portion of their profit share to accommodate the new partner. This sacrifice may be equal or in any agreed proportion.

Formula: Sacrificing Ratio = Old Ratio - New Ratio

Therefore, (C) matches with (IV).

Goodwill is an intangible asset that represents the value of a firm's reputation, customer loyalty, brand name, and business connections. It enables a business to earn higher profits compared to a new business. The incoming partner or the remaining partners compensate for goodwill because they benefit from this established reputation.

Therefore, (D) matches with (I).

The correct matching is: (A) - (II), (B) - (III), (C) - (IV), (D) - (I)

Option 1 is correct.