Match List-I with List-II (under the Fixed Capital Method):List-IList-II(A) Bank (fresh capital introduced)(I) Debit side of Partner's Current Account(B) Interest on drawings(II) Debit side of Partner's Capital Account(C) Bank (permanent withdrawal of capital)(III) Credit side of Partner's Current Account(D) Commission(IV) Credit side of Partner's Capital AccountChoose the correct answer from the options given below:
- A(A) - (IV), (B) - (I), (C) - (II), (D) - (III)
- B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Under the Fixed Capital Method, transactions are recorded based on their type:(A) Fresh capital introduced: This increases baseline capital and is recorded on the credit side of the Partner's Capital Account. Maps to (IV).(B) Interest on drawings: This is an operational debit that reduces current earnings, recorded on the debit side of the Partner's Current Account. Maps to (I).(C) Permanent withdrawal of capital: This reduces the core capital investment, recorded on the debit side of the Partner's Capital Account. Maps to (II).(D) Commission: This is an allocation of profit to a partner, recorded on the credit side of the Partner's Current Account. Maps to (III).This matches the sequence: (A) - (IV), (B) - (I), (C) - (II), (D) - (III).