Match List-I with List-IIList-I (Expenses)List-II (Explanation)(A) Purchase of Stock-in-trade(I) Expenses towards interest charges during the year on the borrowings(B) Employees benefit expenses(II) Diminution in the value of fixed assets(C) Finance cost(III) Purchases of goods for the purpose of trading(D) Depreciation(IV) Expenses incurred on employees towards salary, wages, leave encashment, staff welfare, etc.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
Evaluating the options based on standard financial statements definitions:Purchase of Stock-in-trade: Represents buying goods for resale (III)Employees benefit expenses: Covers salary, wages, welfare, etc. (IV)Finance cost: Includes interest expenses on borrowed funds (I)Depreciation: Represents the systematic fall in value of fixed assets (II)Matching setup: (A) - (III), (B) - (IV), (C) - (I), (D) - (II).