Match List – I with List – II. List - I List - II (A) Loss on Sale of…

The correct answer is Option (1) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(A) Loss on Sale of Sinking Fund Investment — this matches (IV) Debit in Sinking Fund Account. Profit or loss on the sale of sinking fund investments is closed to the Sinking Fund Account; a loss reduces the fund, so the fund is debited.

(B) Sinking Fund account — this matches (III) Balance Sheet - Reserve & Surplus. The fund is built from profits set aside, so it is shown under Reserves and Surplus.

(C) Reserve Capital — this matches (I) Capital to be called up on winding up of company. It is uncalled capital kept for creditors on winding up.

(D) Securities Premium — this matches (II) Writing off of discount allowed on any security of the company. This is one of the purposes for which the securities premium may be used.

Note: This question is from the pre-rationalised NCERT book for item (A) (sinking fund). The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.