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Home Questions 2F4ZVQNNPV
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Match List-I with List-II.

LIST I
(Different accounts)
 LIST II
(Related transaction)
(A) Profit and loss account (I) Dissolution of partnership
(B) Profit and loss appropriation account (II) Dissolution of firm
(C) Revaluation account (III) Interest on loan to partner
(D) Realization account (IV) Transfer to reserve

Choose the correct answer from the options given below:

Options:

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Explanation:

The correct answer is option 4- (A)-(III), (B)-(IV), (C)-(I), (D)-(II).

LIST I
(Different accounts)
 LIST II
(Related transaction)
(A) Profit and loss account (III) Interest on loan to partner 
(B) Profit and loss appropriation account (IV) Transfer to reserve 
(C) Revaluation account (I) Dissolution of partnership
(D) Realization account (II) Dissolution of firm

 

(A) Profit and loss account- (III) Interest on loan to partner.
Interest on loan to a partner is an expense and is recorded in the Profit and Loss Account.

(B) Profit and loss appropriation account-(IV) Transfer to reserve.
Transfers to general reserve or other reserves are made through the Profit and Loss Appropriation Account.

(C) Revaluation account- (I) Dissolution of partnership.
Revaluation of assets and liabilities happens at the time of reconstitution of the firm, which is called dissolution of partnership.

(D) Realization account-(II) Dissolution of firm.
Realization Account is prepared to record sale of assets and payment of liabilities during complete dissolution of the firm.

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