Match List I with List II regarding accounting adjustments during reconstitution/death:List IA. Loss on RevaluationB. Profit on RevaluationC. Premium brought by new partnerD. On the death of a partner, profit till the date of death is List III. Credited to old partners in old ratioII. Debited to profit and loss suspense A/CIII. Credited to old partners in sacrificing ratioIV. Debited to old partners in the old ratioChoose the correct answer from the options given below:
- AA-I, B-IV, C-III, D-II
- BA-IV, B-I, C-III, D-II
- CA-II, B-I, C-IV, D-III
- DA-III, B-II, C-IV, D-I
Solution & Step-by-step Explanation
Matching the adjustment descriptions with their specific ledger impacts:A. Loss on Revaluation: IV. Debited to old partners in the old ratio.B. Profit on Revaluation: I. Credited to old partners in old ratio.C. Premium brought by new partner: Shared as compensation III. Credited to old partners in sacrificing ratio.D. Share of profit till death: Standard recording entry II. Debited to profit and loss suspense A/C.This yields: A-IV, B-I, C-III, D-II.