Match List I with List II.
| List I | List II |
| A. Revaluation Profit | I. Bank A/c debit, Premium for Goodwill A/c credit |
| B. Bringing capital by new partner | II. Revaluation A/c debit, Old Partners Capital A/c credit |
| C. Dividing premium between sacrificing partners | III. Bank A/c debit, New Partner Capital A/c credit |
| D. Bringing share of goodwill by New partner | IV. Premium for Goodwill A/c debit, Sacrificing Partners' Capital A/c credit |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-II, B-III, C-IV, D-I
(A) Revaluation Profit — this matches (II) Revaluation A/c debit, Old Partners Capital A/c credit. A gain on revaluation belongs to the old partners and is credited to them in the old ratio.
(B) Bringing capital by new partner — this matches (III) Bank A/c debit, New Partner Capital A/c credit. The cash brought as capital is credited to the new partner’s capital account.
(C) Dividing premium between sacrificing partners — this matches (IV) Premium for Goodwill A/c debit, Sacrificing Partners’ Capital A/c credit. The premium goes to the partners who gave up a share, in their sacrificing ratio.
(D) Bringing share of goodwill by New partner — this matches (I) Bank A/c debit, Premium for Goodwill A/c credit. The cash brought for goodwill is first credited to Premium for Goodwill Account.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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