Match the List-I (Journal Entries) with List-II (Revaluation of assets and reassessment of liabilities)

List-I

A. Asset A/c Dr. To Revaluation A/c

B. Old Partner's Capital A/c Dr. To Revaluation A/c

C. Liability A/c Dr. To Revaluation A/c

D. Revaluation A/c Dr. To Liability A/c

List-II

I. For reduction in the amount of a liability

II. For unrecorded liability

III. For an unrecorded asset

IV. For transferring loss on revaluation

Choose the correct answer from the options given below:

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

Correct answer: Option (1) → A - III, B - IV, C - I, D - II

Concept: The Revaluation Account records changes in assets and liabilities; unrecorded assets are credited to it, unrecorded liabilities debited, and its balance (profit/loss) is transferred to partners’ capital accounts – per Reconstitution of a Partnership Firm – Retirement/Death of a Partner.

A. Asset A/c Dr. To Revaluation A/c = recording an unrecorded asset (III).
B. Old Partner’s Capital A/c Dr. To Revaluation A/c = transferring loss on revaluation (IV).
C. Liability A/c Dr. To Revaluation A/c = reduction in the amount of a liability (I).
D. Revaluation A/c Dr. To Liability A/c = recording an unrecorded liability (II).
Hence A-III, B-IV, C-I, D-II.