Match the LIST-I with LIST-IILIST-ILIST-IIA.Unrecorded Assets are tra…

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Unrecorded Assets are transferred to	I.	Old partners
B.	On admission of a partner, who will sacrifice his share?	II.	Old Partners' Capital A/c
C.	Profit of revaluation A/c is transferred to partners in	III.	Revaluation A/c
D.	Accumulated profits and reserves are transferred to	IV.	Old ratio

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

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

On admission, everything that belongs to the period before the new partner joined is settled among the old partners in their old ratio.

(A) Unrecorded Assets are transferred to — this matches (III) Revaluation A/c. An asset found unrecorded is a gain to the old firm, so it is brought into the books by crediting the Revaluation Account.

(B) On admission of a partner, who will sacrifice his share? — this matches (I) Old partners. The new partner's share comes out of the existing partners' shares, so the old partners sacrifice.

(C) Profit of revaluation A/c is transferred to partners in — this matches (IV) Old ratio. The rise in values took place before the admission, so the revaluation profit is shared by the old partners in the old ratio.

(D) Accumulated profits and reserves are transferred to — this matches (II) Old Partners' Capital A/c. Reserves were earned by the old firm; the new partner has no share in them, so they are credited to the old partners' capital accounts in the old ratio.

NCERT (2026-27 edition):
Summary – “… 4. Adjustments for Revaluation of Assets and Reassessment of Liabilities: If, at the time of admission of a partner, the assets and liabilities are revalued or some asset or liability is found unrecorded, necessary adjustments are made through the Revaluatiion Account. Any gain or loss arising from such exercise shall be distributed among the old partner’s in their old profit sharing ratio. 5. Adjustment for reserves and accumulated profits/losses: If, at the time of admission of a partner, any reserve and accumulated profits or losses exist in books of the firm, these should be transferred to old partner’s capital/current accounts in their old profit sharing ratio.”

NCERT (2026-27 edition):
Sacrificing Ratio – “The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called sacrificing ratio.”