Question

Match List I with List II:

Choose the correct answer from the options given below:

• A. A-II, B-III, C-I, D-IV
• B. A-III, B-I, C-II, D-IV
• C. A-II, B-I, C-III, D-IV
• D. A-I, B-III, C-II, D-IV

Hint:

Sacrificing ratio = Old Ratio – New Ratio; Gaining ratio = New Ratio – Old Ratio; Goodwill = Average profit × years purchase.

Answer 1

The Correct Option is A

Step 1: Understand the terms
Sacrificing Ratio is the loss in profit share, calculated as \( \text{Old Ratio} - \text{New Ratio} \) (matching with II).
New Ratio is the revised profit-sharing ratio after change (matching with III, since "Old Ratio + Gaining Ratio" relates to the new ratio).
Gaining Ratio is the increase in profit share, calculated as \( \text{New Ratio} - \text{Old Ratio} \) (matching with I).
Value of goodwill is calculated by multiplying average profit by the number of years’ purchase (matching with IV).

Step 2: Match List I and List II accordingly
A matches II
B matches III
C matches I
D matches IV

Step 3: Conclusion
Therefore, option (A) is correct.