Match group I with group II and select the correct answer using the codes given below the list:
| Group – I | Group – II |
| A. Reserve Fund/General Reserve
B. Sacrificing Ratio C. Increase in the value of liability D. Increase in the value of asset |
1. Old Ratio – New Ratio
2. Credit to Revaluation Account 3. Accumulated Profit 4. Debit to Revaluation Account |
| (a) | A | B | C | D | (b) | A | B | C | D |
| 2 | 4 | 1 | 3 | 4 | 3 | 1 | 2 | ||
| (c) | A | B | C | D | (d) | A | B | C | D |
| 2 | 3 | 4 | 1 | 3 | 1 | 4 | 2 |
Anurag Pathak Changed status to publish June 1, 2023
Ans – d)
Explanation:-
1 Reserve funds are part of the accumulated profit.
2. Sacrificing Ratio = Old Ratio – New Ratio
3. Increase in the value of the liability is debited to Revaluation Account
4. Increase in the value of the asset is credited to Revaluation Account
Anurag Pathak Changed status to publish June 1, 2023
