Question

At the time of retirement of a partner, arrange the following accounts in the correct sequence.
(A) Partners' Current A/c
(B) Revaluation A/c
(C) Balance Sheet
(D) Partners' Capital A/c
Choose the correct answer from the options given below:

• A. (A), (B), (C), (D)
• B. (B), (A), (D), (C)
• C. (C), (B), (A), (D)
• D. (C), (B), (D), (A)

Hint:

The Balance Sheet is always prepared last; the Revaluation A/c goes first.

Answer 1

The Correct Option is B

Step 1: Follow the flow of a number:
A revaluation profit first appears in the Revaluation A/c. It is then passed to the partners' accounts, and finally shows in the Balance Sheet.

Step 2: Place each account:
The Revaluation A/c is the starting point, so B is first. Adjusting entries go to the Current A/c, so A is second. The Capital A/c collects the final settlement, so D is third. The Balance Sheet reports the result, so C is last.

Step 3: Check against options:
Options 3 and 4 put the Balance Sheet first, which is not possible. Option 1 starts with the Current A/c before revaluation.

Step 4: Conclusion:
The order B, A, D, C is option 2.

Final Answer:
The sequence B, A, D, C is option 2. \[ \boxed{\text{(B), (A), (D), (C) (Option 2)}} \]