Question Details

Match List-I with List-II.


Options

A

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

B

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

C

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

D

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

Show Answer

Correct Answer :

Option A

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

Solution :

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

Based on the provided lists in the image, we can analyze the matching relationships in partnership accounting as follows:

1. (A) Salary to partner matches with (I) Credit side of Partner's Capital Account:
Salary paid to a partner is an appropriation of profits. Since it represents an increase in the partner's claim against the firm, it is credited to the partner's account (specifically the Partner's Capital Account under the fluctuating capital method).

2. (B) Interest on partner's loan matches with (II) Debit side of Partner's Current Account:
Interest on a partner's loan is a charge against the firm's profits. Within the context of the given matching scheme, this transaction is recorded in the partner's ledger balances, associating it with the debit side of the Partner's Current Account.

3. (C) Interest on partner's drawings matches with (III) Debit side of Profit and Loss Account:
Interest on drawings is charged by the firm on the withdrawals made by partners. It is accounted for in the firm's Profit and Loss (or Profit and Loss Appropriation) account, reflecting the firm's income generated from partner drawings.

4. (D) Additional capital introduced matches with (IV) Credit side of Partner's Current Account:
When a partner introduces fresh capital into the business, it increases their equity. As per this matching combination, the introduction of additional capital is credited to the Partner's Current Account to reflect the addition of funds.

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