Match List-I with List-II: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:Fresh capital introduced (A) is credited directly to the Partner's Capital Account (IV).Interest on drawings (B) is debited to the Partner's Current Account (I).Permanent withdrawal of capital (C) is debited to the Partner's Capital Account (II).Partner's Commission (D) is an appropriation credited to the Partner's Current Account (III).Thus, the correct configuration is (A) - (IV), (B) - (I), (C) - (II), (D) - (III).