Match List-I with List-II:List-I(A) Salary to partner(B) Interest on partner's loan(C) Interest on partner's drawings(D) Additional capital introducedList-II(I) Credit side of Partner's Capital Account(II) Debit side of Partner's Current Account(III) Debit side of Profit and Loss Account(IV) Credit side of Partner's Current AccountChoose the correct answer from the options given below:
- A(A) - (IV), (B) - (II), (C) - (III), (D) - (I)
- B(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
- C(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Matching transactional components to their respective destination ledgers:Salary to partner (A): An appropriation credited to the partner's current account matches with (IV).Interest on partner's loan (B): A charge against profits debited to the firm's core Profit and Loss Account matches with (III).Interest on partner's drawings (C): Debited to the partner's current account to reduce their equity matches with (II).Additional capital introduced (D): Credited directly to the main permanent Partner's Capital Account matches with (I).This forms the mapping (A) - (IV), (B) - (III), (C) - (II), (D) - (I).