Match List – I with List – II.

Choose the correct answer from the options given below :

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

The correct answer is Option (4) - (A)-(II), (B)-(IV), (C)-(I), (D)-(III).

* Goodwill written off- Debit side of Partner's Capital A/c. When goodwill is written off then goodwill is credited and partners account are debited to show the reducing the balance of both goodwill and partners account.

* Partner's Salary- Credit side of Partner's Capital A/c. Partners salary is the income of the partners so there capital accounts are credited to show the increase in their balance.

* Bad Debts Recovered- Credit side of Profit and Loss A/c. Bad debts recovered is an income of the firm so it is credited to the profit and loss account.

* Manager's Commission- Debit side of Profit and Loss A/c. Manager is provided commission on basis of net profit and it is an expense for the firm so it is debited to the profit and loss account.