Match List-I with List-II.

At the time of retirement following Transactions took place. Chose the correct treatment.

Choose the correct answer from the options given below:

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

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

(A) Asset taken over by the partner- (III) Debit side of Partners Capital A/c.
If any partner took over the asset then capital balance of the partner decreases so partner's capital account is debited and revaluation account is credited.

(B)  Increase in Assets- (IV) Credit side of Revaluation A/c.
If there's an increase in the value of assets, it would be recorded on the credit side of revaluation account as it is a gain of the firm. Journal entry passed in this case is- Asset A/c Dr. To Revaluation A/c. 

(C) Unrecorded Liability- (I) Debit side of Revaluation A/c.
For recording the amount of a unrecorded liability- Revaluation A/c  Dr. To Liability A/c journal entry is passed. Introducing an unrecorded liability results in a loss, so the Revaluation Account is debited.

(D) Goodwill Appearing in books- (II) Written off amongst old partners in old ratio.
The goodwill that already appears in the books of accounts is written off and is transferred to the old partner's capitals accounts in their old profit-sharing ratio. The old partner's capital accounts are debited with their share of goodwill. To ensure fairness and that no partner is unfairly disadvantaged or benefitted by the change, the existing goodwill is written off or adjusted in their old ratio. The journal entry for this- Partner's Capital A/c Dr. To Goodwill A/c.