Match List-I with List-II related to accounting treatment of Revaluation of Assets and Reassessment of Liabilities.
List-I List-II (A) Revaluation account is credited with (I) To the revaluation account (B) Unrecorded assets are credited (II) Increase in value of asset (C) Revaluation account is debited (III) Is credited to old partners Capital A/c in old ratio (D) Gain on revaluation (IV) If liability increases
Choose the correct answer from the options given below:
Match List-I with List-II related to accounting treatment of Revaluation of Assets and Reassessment of Liabilities.
| List-I | List-II |
|---|---|
| (A) Revaluation account is credited with | (I) To the revaluation account |
| (B) Unrecorded assets are credited | (II) Increase in value of asset |
| (C) Revaluation account is debited | (III) Is credited to old partners Capital A/c in old ratio |
| (D) Gain on revaluation | (IV) If liability increases |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 4
Revaluation A/c is credited with gains, that is an increase in asset value, so (A) matches (II). An unrecorded asset brought into books is credited to the Revaluation A/c, so (B) matches (I). Revaluation A/c is debited with losses such as an increase in liability, so (C) matches (IV). The net gain is credited to old partners in the old ratio, so (D) matches (III).
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