Match List-I Dissolution transactions with List-II Journal Entries

List-I

A. For sale of assets

B. Transfer of assets to realisation account

C. Creditors took machinery for full settlement of his claims

D. Dissolution expenses paid

List-II

I. No Journal Entry

II. Bank A/c Dr. To Realisation A/c

III. Realisation A/c Dr. To Assets A/c

IV. Realisation A/c Dr. To Bank A/c

Choose the correct answer from the options given below:

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

Correct answer: Option (3) → A - II, B - III, C - I, D - IV

Concept: On dissolution, assets and liabilities are closed through the Realisation Account; an asset taken over by a creditor in full settlement needs no journal entry – per Dissolution of Partnership Firm.

A. Sale of assets → Bank A/c Dr. To Realisation A/c (II).
B. Transfer of assets to realisation → Realisation A/c Dr. To Assets A/c (III).
C. Creditor takes machinery in full settlement → No Journal Entry (I), as the asset and the liability leave together.
D. Dissolution expenses paid → Realisation A/c Dr. To Bank A/c (IV).
Hence A-II, B-III, C-I, D-IV.