Match List-I with List-II. At the time of retirement following Transa…

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

On retirement, changes in the value of assets and liabilities go through the Revaluation Account, while items that belong to a particular partner go to his capital account.

(A) Asset taken over by the partner — this matches (III) Debit side of Partners Capital A/c. The partner receives the asset, so the amount reduces what is due to him and his capital account is debited.

(B) Increase in Assets — this matches (IV) Credit side of Revaluation A/c. A rise in value is a gain (Asset A/c Dr. To Revaluation A/c).

(C) Unrecorded Liability — this matches (I) Debit side of Revaluation A/c. Bringing in a liability not recorded so far is a loss (Revaluation A/c Dr. To Liability A/c).

(D) Goodwill Appearing in books — this matches (II) Written off amongst old partners in old ratio. Existing goodwill is written off to all partners’ capital accounts in the old profit sharing ratio.