Manav, Nath and Narayan were partners in a firm sharing profits in the ratio of 1 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2025 Nath died.

Match List-I with List-II

List-I List-II
(A) There was a debit balance of Rs 30,000 in the profit and loss account. (I) Nath's Capital A/c will be debited by Rs. 5100
(B) Nath's share of profit/loss in the year of his death was to be calculated on the basis of average profit/loss of last 5 years, the average loss is Rs 90,000. (II) Nath's Capital A/c will be debited by Rs. 15000
(C) There was a Goodwill appearing in the books for Rs. 25000. (III) Nath's Capital A/c will be debited by Rs. 12500
(D) There was a drawing of Nath of Rs 85000 on which interest is to be charged at 12%. (IV) Nath's Capital A/c will be debited by Rs. 22,500

Choose the correct answer from the options given below:

Question

Accepted Answer

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

Answer

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

Answer

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

Answer

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

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

List-I	List-II
(A) There was a debit balance of Rs 30,000 in the profit and loss account.	(I) Nath's Capital A/c will be debited by Rs. 5100
(B) Nath's share of profit/loss in the year of his death was to be calculated on the basis of average profit/loss of last 5 years, the average loss is Rs 90,000.	(II) Nath's Capital A/c will be debited by Rs. 15000
(C) There was a Goodwill appearing in the books for Rs. 25000.	(III) Nath's Capital A/c will be debited by Rs. 12500
(D) There was a drawing of Nath of Rs 85000 on which interest is to be charged at 12%.	(IV) Nath's Capital A/c will be debited by Rs. 22,500

Solution