Match List-I with List-II List-

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Match List-I with List-II

List-I	List-II
(A) Bank (fresh capital introduced)	(I) Debit side of Partner's Current Account
(B) Interest on drawings	(II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)	(III) Credit side of Partner's Current Account
(D) Commission	(IV) Credit side of Partner's Capital Account

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is Option (2) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)

List-I	List-II
(A) Bank (fresh capital introduced)	(III) Credit side of Partner's Current Account
(B) Interest on drawings	(IV) Credit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)	(I) Debit side of Partner's Current Account
(D) Commission	(II) Debit side of Partner's Capital Account

(A) Bank (fresh capital introduced) → (IV) Credit side of Partner’s Capital Account. Because when a partner brings in additional capital, the firm’s liability towards the partner increases, hence the Capital Account is credited.
(B) Interest on drawings → (I) Debit side of Partner’s Current Account. Interest on drawings is an expense recoverable from the partner; it reduces the partner’s share, so it is debited to the Current Account.
(C) Bank (permanent withdrawal of capital) → (II) Debit side of Partner’s Capital Account. Permanent withdrawal reduces the partner’s capital balance, so the Capital Account is debited.
(D) Commission → (III) Credit side of Partner’s Current Account. Commission payable to a partner increases their income; therefore, it is credited to the Current Account.