Match the following list 1 with list 2 regarding the dissolution of partnership firm.

1) d, 2) c, 3) b, 4) a

* Change in assets and liabilities are recorded- Revaluation Account is made to record the change in the value of assets and liabilities. If value of asset is increased and liability value is decreased then it is record on the credit side of revaluation A/c and If value of asset is decreased and liability value is increased then it is record on the debit side of revaluation A/c.

* All assets and liabilities are recorded- Realisation A/c is made to transfer all assets and liabilities. Realisation Account is used to record the transfers and transactions related to the dissolution of the firm. It helps in keeping track of the assets realized and the liabilities settled during the winding-up process.

* Partner's Capital A/c are settled through- Partner's capital account are closed in the last through bank account. Any deficiency or surplus of cash is adjusted. No balance will be left in this account in the end. If a partner's capital account shows a credit balance (indicating that the firm owes money to the partner), the firm will pay out the balance to the partner. The entry for this transaction will be as follows:
Partner's Capital Account (individually) Dr. To Bank Account
This entry records the payment made to the partner, effectively settling their capital account and releasing the funds owed to them by the firm.

* Gain on realisation is transferred to- When the firm undergoes dissolution, its books of account need to be closed, and the resulting profit or loss from the realization of assets and settlement of liabilities must be calculated. To achieve this, a Realisation Account is prepared, which helps determine the net effect (profit or loss) of asset realization and liability payments. This net effect is then transferred to the partners' capital accounts based on their agreed-upon profit-sharing ratio. The final balance in the Realisation Account represents the profit or loss on realization. If the total proceeds from the realization of assets exceed the total payment for settling liabilities and realization expenses, it results in a profit. Conversely, if the total payment exceeds the total proceeds, it results in a loss. The profit or loss on realization, as determined by the Realisation Account, is then transferred to the partners' capital accounts based on their agreed profit-sharing ratio. This distribution ensures that each partner receives their rightful share of the profit or bears their proportionate loss, as per the terms of the partnership agreement.