Match List I with List II.
| List I | List II |
| A. Bank (fresh capital introduced) | I. Debit side of partner current account |
| B. Interest on Drawings | II. Debit side of partner capital account |
| C. Bank (permanent withdrawal of capital) | III. Credit side of partner current account |
| D. Commission | IV. Credit side of partner capital account |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-IV, B-I, C-II, D-III
Under the fixed capital method, the capital account records only fresh capital and permanent withdrawal of capital; all other items (profit, interest, drawings, commission) go to the current account. A partner's account is debited with what he takes or is charged, and credited with what he brings or earns.
(A) Bank (fresh capital introduced) — this matches (IV) Credit side of Partner's Capital Account. Fresh capital is a change in the fixed capital itself and is brought in by the partner.
(B) Interest on drawings — this matches (I) Debit side of Partner's Current Account. It is a charge on the partner, recorded in the current account.
(C) Bank (permanent withdrawal of capital) — this matches (II) Debit side of Partner's Capital Account. Taking capital out permanently reduces the fixed capital.
(D) Commission — this matches (III) Credit side of Partner's Current Account. It is earned by the partner and is not a capital item.
NCERT (2026-27 edition): NCERT (2026-27 edition):
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