Match list I with list II and choose the correct ans from the options given below:
| LIST 1 | LIST 2 |
| A) Transfer of accumulated profits | I) Realisation account |
| B) Unrecorded assets sold on dissolution of firm | II) Profit and loss account |
| C) Manager's Commission | III) Profit and loss Appropriation account |
| D) Partner's commission | IV) Partner's Capital Account |
Answer & explanation
Correct answer: option 2
The correct answer is option 2- A-IV, B-I, C-II, D-III.
| LIST 1 | LIST 2 |
| A) Transfer of accumulated profits | IV) Partner's Capital Account |
| B) Unrecorded assets sold on dissolution of firm | I) Realisation account |
| C) Manager's Commission | II) Profit and loss account |
| D) Partner's commission | III) Profit and loss Appropriation account |
* Transfer of accumulated profits- Accumulated profits and losses are distributed between partners. These are transferred to capital account or current account of the partners.
* Unrecorded assets sold on dissolution of firm- Unrecorded assets sold on dissolution of firm is shown on the credit side of realisation account.
* Manager's Commission- Manager's commission is a charge against profit so it is shown in debit side of profit and loss account.
* Partner's commission- Partner's commission is a appropriation of profit so it is shown in debit side of profit and loss appropriation account.