Match List-I with List-II.

Choose the correct answer from the options given below:

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

The correct answer is option 2- (A)-(I), (B)-(III), (C)-(II), (D)-(IV).

(A) Existing goodwill- (I) Debit of capital account.
When a new partner is admitted, goodwill of the business is valued afresh. For this, 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.

(B) Increase in value of assets- (III) Credit of revaluation account.
When a new partner is admitted, the partnership might revalue its assets to reflect their current market value. 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) Decrease in value of assets- (II) Debit of revaluation account. 
The decrease in asset value is a loss, so the Revaluation Account is debited (to recognize the loss) and the asset is credited.

(D) New partner capital- (IV) Credit of capital account.
 When a new partner is admitted into a partnership firm and brings in capital, The capital brought in is credited to the new partner’s capital account. This is because the business receives cash (an asset), and the corresponding credit goes to the capital account of the new partner, increasing the firm’s equity. So, the entry would be- Cash A/c Dr. To New Partner's Capital A/c.