Match List – I with List – II. List - I List - II (A) Goodwill writte…

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

Partners’ own items go to their capital accounts; the firm’s business gains and expenses go to the Profit and Loss Account:

(A) Goodwill written off — this matches (II) Debit side of Partner's Capital A/c. Existing goodwill is written off by debiting the partners’ capital accounts in their old ratio.

(B) Partner's Salary — this matches (IV) Credit side of Partner's Capital A/c. Salary is an amount due to the partner, so his account is credited (under the fluctuating capital method).

(C) Bad Debts Recovered — this matches (I) Credit side of Profit and Loss A/c. Recovery of a debt written off earlier is a gain.

(D) Manager's Commission — this matches (III) Debit side of Profit and Loss A/c. The manager is an employee, so his commission is a business expense.