Match List – I with List – II.

Choose the correct answer from the options given below :

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

The correct answer is option 2- A-II, B-III, C-IV, D-I.

* Expense- Stationery. Stationery is an expense account. This account is debited to record the expense incurred on purchasing stationery items for business use. It represents the cost of stationery consumed.

* Liabilities- Creditors. Creditors (Accounts Payable) are a liability of a business. This account is credited when the business receives goods or services on credit from suppliers (creditors). It represents the amount owed to creditors for goods or services purchased on credit.

* Revenue- Sales. Sales is a revenue account. This account is credited when goods or services are sold to customers on credit or cash. It represents the income generated from the sale of goods or services. When sales are made on credit, the Accounts Receivable account is debited (increased). When sales are made for cash, the Cash/Bank account is debited.

* Asset- Machinery. Machinery is an asset for the business. This account is debited when machinery is purchased or acquired. It represents the cost of machinery owned by the business. When payment is made for machinery the Cash/Bank account is credited. If machinery is purchased on credit, the creditor account is credited.