Match List-I with List-II

List – I	List – II
Payment of loans due to partners	Realisation A/c Dr. To Bank A/c
For settlement of partners’ accounts, in case their capital account shows a debit balance	Bank A/c Dr. To Loan to Partners A/c
For settlement of loan by a firm to a partner	Bank A/c Dr. To Partner’s Capital A/c
For settlement of any unrecorded liability	Partner’s Loan A/c Dr. To Bank A/c

Choose the correct answer from the options given below:

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

Here is a step-by-step explanation of the matching between List-I and List-II during the dissolution of a partnership firm:

1. (A) Payment of loans due to partners matches with (IV) Partner’s Loan A/c Dr. To Bank A/c
When a partner has advanced a loan to the firm, it is a liability that is paid off after settling outside liabilities but before distributing capital. Since it is paid directly to the partner rather than transferred to the Realisation Account, the journal entry is to debit the Partner's Loan Account (reducing the liability) and credit the Bank Account (outflow of cash).

2. (B) For settlement of partners’ accounts, in case their capital account shows a debit balance matches with (III) Bank A/c Dr. To Partner’s Capital A/c
If a partner’s capital account shows a debit balance (deficit) after all adjustments, it means the partner owes money to the firm. To settle this account, the partner brings in the required cash. The firm records this by debiting the Bank Account (inflow of cash) and creding the Partner's Capital Account (to close it).

3. (C) For settlement of loan by a firm to a partner matches with (II) Bank A/c Dr. To Loan to Partners A/c
A loan given by the firm to a partner is an asset for the firm. When this loan is recovered or settled, the firm receives cash/bank from the partner. The journal entry debits the Bank Account (increasing cash) and credits the Loan to Partners Account to close the asset account.

4. (D) For settlement of any unrecorded liability matches with (I) Realisation A/c Dr. To Bank A/c
During dissolution, all assets and liabilities are routed through the Realisation Account to calculate the final profit or loss on realization. When any liability (recorded or unrecorded) is paid off by the firm, the Realisation Account is debited (representing a loss/expense) and the Bank Account is credited (representing cash outflow).