Match List-I with List-II:List-I (Different accounts)List-II (Related transaction)(A) Profit and loss account(I) Dissolution of partnership.(B) Profit and loss appropriation account(II) Dissolution of firm.(C) Revaluation account(III) Interest on loan to partner.(D) Realization account(IV) Transfer to reserve.Choose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (I), (B) - (III), (C) - (II), (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
* Profit and Loss Account: Handles operational charges against income, such as interest on a loan given by a partner. Hence, (A) (III).Profit and Loss Appropriation Account: Used to allocate net income among partners, such as making general transfers to reserves. Hence, (B) (IV).Revaluation Account: Prepared during the reconstitution of a firm, which involves the dissolution of an old partnership agreement without winding up operations. Hence, (C) (I).Realization Account: Prepared specifically when the entire legal entity winds up, which signifies the dissolution of the firm. Hence, (D) (II).Thus, the proper cross-mapping matches Option D.