Match List-I with List-II:List-I (Particulars)List-II (Treatment)(A) Issue of debentures as collateral security(I) Vendor Account will be credited(B) Issue of debentures to Public(II) Debenture Suspense Account will be debited(C) Issue of debentures to vendor for purchase of an Asset(III) Statement of Profit and Loss will be debited(D) Writing off Discount/Loss on Issue of Debentures(IV) Bank Account will be debitedChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- B(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- C(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
- D(A) - (II), (B) - (IV), (C) - (III), (D) - (I)
Solution & Step-by-step Explanation
Let's match the standard journal entries for debentures step-by-step:(A) Issue of debentures as collateral security: Entry involves debiting Debenture Suspense Account (II). ()(B) Issue of debentures to Public: Cash flows into the firm Bank Account will be debited (IV).(C) Issue of debentures to vendor: Initial asset purchase entry credits the Vendor Account (I). ()(D) Writing off Discount/Loss on Issue: Written off against revenue earnings Statement of Profit and Loss will be debited (III).Hence, the matching is (A) - (II), (B) - (IV), (C) - (I), (D) - (III).