The correct answer is option 2- (A) - (III), (B) - (I), (C) - (IV), (D) - (II).
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List-I
(Transaction)
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List-II
(Relevant account)
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(A) Settlement of Partners Loan
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(III) Credit Side of Bank A/c
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(B) Transfer of liabilities
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(I) Credit side of Realization A/c
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(C) Transfer of Assets
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(IV) Debit Side of Realization A/c
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(D) Remuneration payable to partner
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(II) Partner's Capital will be credited
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(A) Settlement of Partners Loan- (III) Credit Side of Bank A/c.
Partner's loan is not transferred to realisation account but a separate account named partner's loan account is made and this loan is paid separately because it is not outsider liability. Journal entry for this-
Partner's loan A/c Dr.
To Bank A/c
(B) Transfer of liabilities-(I) Credit side of Realization A/c.
All external liabilities (except partners' capital or loan accounts) are credited to the realization account. The following Journal Entries is passed for this-
For liabilities- Liabilities A/c Dr. To Realization A/c
(C) Transfer of Assets- (IV) Debit Side of Realization A/c.
All tangible and intangible assets (except cash or bank and fictitious assets like debit balance of P&L) are debited to the realization account.
For assets- Realization A/c Dr. To Assets A/c.
(D) Remuneration payable to partner- (II) Partner's Capital will be credited.
Remuneration to a partner is an appropriation of profit, not a business expense. When the remuneration is payable to a partner, it is credited to the partner's capital (or current) account. | 
