Match List-I with List-II:At the time of retirement, the following transactions took place. Choose the correct treatment.List-I (Particulars)List-II (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/CChoose the correct answer from the options given below:
- A(A) - (III), (B) - (I), (C) - (IV), (D) - (II)
- B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's match the accounting treatments at the time of retirement step-by-step:(A) Asset taken over by the partner: Reduces partner's capital Debit side of Partners Capital A/C (III).(B) Increase in Assets: Profit gain recorded on the Credit side of Revaluation A/C (IV).(C) Unrecorded Liability: Unforeseen loss recorded on the Debit side of Revaluation A/C (I).(D) Goodwill Appearing in books: Existing book value needs to be cleared Written off amongst old partners in old ratio (II).Thus, the correct option matching is (A) - (III), (B) - (IV), (C) - (I), (D) - (II).