In case of admission of a partner, Match List-I with List-II.

List-I

(A) For Unrecorded Liability

(B) For Over-Valuation of Asset

(C) For transferring loss on revaluation

(D) For Under-Valuation of Asset

List-II

(I) Revaluation A/c Dr. To Asset A/c

(II) Partners' Capital A/c Dr. To Revaluation A/c

(III) Revaluation A/c Dr. To Liability A/c

(IV) Asset A/c Dr. To Revaluation A/c

Choose the correct answer from the options given below:

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

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

Concept: Revaluation Account journal entries on admission, per Reconstitution of a Partnership Firm – Admission of a Partner.

(A) An unrecorded liability is a loss ⇒ Revaluation A/c Dr. To Liability A/c → (III).
(B) Over-valuation means the asset must be reduced, a loss ⇒ Revaluation A/c Dr. To Asset A/c → (I).
(C) Loss on revaluation is transferred by Partners’ Capital A/c Dr. To Revaluation A/c → (II).
(D) Under-valuation means the asset is increased, a gain ⇒ Asset A/c Dr. To Revaluation A/c → (IV).
Thus A-III, B-I, C-II, D-IV.