CBSE 2025, Set 2

Question

Match the items in Column I with those in Column II in the context of Retirement of a partner and select the correct option:
| Column I | Column II | |---|---| | (i) Unrecorded Liability | (a) Credited to all partners' capital accounts in old profit sharing ratio | | (ii) Accumulated Losses | (b) Debited to all partners' capital accounts in old profit sharing ratio | | (iii) Profit on Revaluation | (c) Debited to Revaluation Account | A). (i)-(a), (ii)-(b), (iii)-(c) B). (i)-(c), (ii)-(b), (iii)-(a) C). (i)-(b), (ii)-(c), (iii)-(a) D). (i)-(a), (ii)-(c), (iii)-(b)

Edvaya · Accepted Answer

The correct answer is (i)-(c), (ii)-(b), (iii)-(a). (B) (i)-(c), (ii)-(b), (iii)-(a) **Explanation:** (i) Unrecorded liability increases the firm's liabilities, so it is debited to Revaluation Account (c). (ii) Accumulated losses are distributed to partners, so they are debited to all partners' capital accounts in the old PSR (b). (iii) Profit on Revaluation belongs to all partners, so it is credited to all partners' capital accounts in the old PSR (a).

Edvaya Target

Edvaya Aspire

Take a Free Mock Test

Target Subjects

Aspire Subjects

Subject Mastery

Accountancy > Accounting For Partnership Firms > Retirement Of A Partner

Keep Practicing

Current Question

Community Stats

Track Your Progress

Edvaya Target

We Value Your Privacy

Column I	Column II
(i) Unrecorded Liability	(a) Credited to all partners' capital accounts in old profit sharing ratio
(ii) Accumulated Losses	(b) Debited to all partners' capital accounts in old profit sharing ratio
(iii) Profit on Revaluation	(c) Debited to Revaluation Account