Match List-I with List-IIList-I (Items to be adjusted on admission)List-II (side of account)(A) Existing goodwill(i) Debit of capital account(B) Increase in value of assets(iii) Credit of revaluation account(C) Decrease in value of assets(ii) Debit of revaluation account(D) New partner capital(iv) Credit of capital accountChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (I), (B) - (III), (C) - (II), (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
Break down of adjustments:(A) Existing goodwill: Written off among old partners by debiting their capital accounts (i)(B) Increase in value of assets: Credited to the Revaluation Account as it is a gain (iii)(C) Decrease in value of assets: Debited to the Revaluation Account as it is a loss (ii)(D) New partner capital: Increases the new partner's capital balance, so it's credited to their capital account (iv)Hence, the matching is (A) - (i), (B) - (iii), (C) - (ii), (D) - (iv).