Match the following list 1 with list 2.

Choose the correct answer from the options given below.

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

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

* Assets are first applied to pay- The amount realized from assets along with contribution from partners, if required, shall be utilized first to pay off the outside liabilities of the firm such as creditors, loans, bank overdraft, bill payables, etc. (it may be noted that secured loans have precedence over the unsecured loans); the balance should be applied to repay loans made by the partners to the firm. (in case the balance amount is not adequate enough to pay off such loans and advances, they are to be paid proportionately). The amount left thereafter is utilized in settlement of capital account balances. Then the surplus if any is divided among partners in their profit sharing ratio.

* Concerned partner is liable personally for- Private debts refer to the personal liabilities and financial obligations of individual partners in a partnership. These debts are not directly related to the partnership business but are instead incurred by the partners in their personal capacity. Private debts may include personal loans, credit card debts, mortgages, medical bills, or any other financial obligations that a partner may have outside the context of the partnership.
For example, if a partner took out a personal loan to finance a house or a car, that loan would be considered a private debt because it is not associated with the partnership's business activities.

* All partners are liable jointly and severally for- Firm Debts are the liabilities and financial obligations incurred by the partnership firm itself. These debts arise from the normal course of business operations and are related to the activities of the partnership. Firm debts may include business loans, trade payables, lease obligations, and any other debts or obligations that the partnership firm owes to external parties.

* Loss including deficiency is first paid out of-  When a firm is dissolved, its business operations come to an end, and it must settle all its accounts and liabilities. Section 48 of the Partnership Act 1932 provides the following rules, which, subject to any agreement among the partners, apply in this context:
Losses, including deficiencies of capital, shall be addressed in the following order:
(i) Firstly, losses will be covered using any available profits of the firm.
(ii) If profits are insufficient, the losses will be covered from the capital contributions made by the partners.
(iii) If there are still remaining losses, the partners will individually contribute to cover the losses in proportion to their profit-sharing ratio.