Match List-I with List-II

At the time of retirement following Transactions took place. Chose the correct treatment

List-I	List-II
(Particulars )	(Treatment )
(A) Asset taken over by the partner	(I) Debit side of Revaluation A/C
(B) Increase in Assets	(II) Written off amongst old partners in old ratio
(C) Unrecorded Liability	(III) Debit side of Partners Capital A/C
(D) Goodwill Appearing in books	(IV) Credit side of Revaluation A/C

Choose the correct answer from the options given below:

At the time of retirement, let me analyze each transaction and its correct accounting treatment:

(A) Asset taken over by the partner → (III) Debit side of Partners Capital A/C

When a retiring partner takes over an asset, the asset leaves the firm and is transferred to the partner. The journal entry is:

Retiring Partner's Capital A/c ... Dr

    To Asset A/c

The partner's capital account is debited because the partner is taking away the asset (reducing their claim on the firm).

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(B) Increase in Assets → (IV) Credit side of Revaluation A/C

When assets are revalued upwards, it represents a gain for the firm. The entry is:

Asset A/c ... Dr

    To Revaluation A/c

The increase in asset value is shown on the credit side of Revaluation Account as it is a profit.

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(C) Unrecorded Liability → (I) Debit side of Revaluation A/C

Discovery of an unrecorded liability is a loss for the firm. The entry is:

Revaluation A/c ... Dr

    To Liability A/c

The liability appears on the debit side of Revaluation Account as it reduces the firm's value.

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(D) Goodwill Appearing in books → (II) Written off amongst old partners in old ratio

Existing goodwill in books must be eliminated by writing it off among all old partners (including the retiring partner) in their old profit sharing ratio:

All Partners' Capital A/cs (Old Ratio) ... Dr

    To Goodwill A/c

Correct Answer: Option 4 → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)