Match List-I with List-II:List-IList-II(A) On dissolution of a firm, creditors is transferred to:(I) Bank account is credited(B) Unrecorded liabilities when paid:(II) Realization Account(C) When realization expenses are paid by the firm on behalf of a partner, such expenses are(III) Bank account is debited.(D) When unrecorded assets are sold(IV) Partner's Capital AccountChoose the correct answer from the options given below:
- A(A) - (II), (B) - (I), (C) - (IV), (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
Matching the dissolution entries logically:(A) Creditors are transferred to Realization Account (II)(B) Unrecorded liabilities when paid result in cash outflow, hence Bank account is credited (I)(C) Realization expenses paid on behalf of a partner are debited to the respective Partner's Capital Account (IV)(D) Unrecorded assets when sold bring in cash, hence Bank account is debited (III)Thus, the proper sequence matches option 1: (A) - (II), (B) - (I), (C) - (IV), (D) - (III).