Match List – I with List – II. LIST I LIST II A. Increase in value of… | Accountancy Part A CUET question

Match List – I with List – II.

LIST I	LIST II
A. Increase in value of Asset	I. Credit side of capital account
B. Decrease in value of Asset	II. Partner capital account debit side
C. Profit on revaluation	III. Debit side of revaluation account
D. Asset taken over by partner	IV. Credit side of revaluation account

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → A-IV, B-III, C-I, D-II

(A) Increase in value of Asset — this matches (IV) Credit side of revaluation account. An increase in an asset is a gain.

(B) Decrease in value of Asset — this matches (III) Debit side of revaluation account. A decrease in an asset is a loss.

(C) Profit on revaluation — this matches (I) Credit side of capital account. The net gain is credited to the old partners’ capital accounts.

(D) Asset taken over by partner — this matches (II) Partner capital account debit side. The partner pays for the asset by a debit to his capital account.

NCERT (2026-27 edition):
Revaluation of Assets and Reassessment of Liabilities – “… In other words, the revaluation account is credited with increase in the value of each asset and decrease in its liabilities because it is a gain and is debited with decrease in the value of assets and increase in its liabilities is debited to revaluation account because it is a loss. Similarly unrecorded assets are credited and unrecorded liabilities are debited to the revaluation account. If the revaluation account finally shows a credit balance then it indicates net gain and if there is a debit balance then it indicates net loss. Which will be transferred to the capital accounts of the old partners in old ratio.”

NCERT (2026-27 edition):
Accounting Treatment

Extract from the NCERT textbook