Match List-I with List-II
|
List-I |
List-II |
|
(A) Bank (fresh capital introduced) |
(I) Debit side of Partner's Current Account |
|
(B) Interest on drawings |
(II) Debit side of Partner's Capital Account |
|
(C) Bank (permanent withdrawal of capital) |
(III) Credit side of Partner's Current Account |
|
(D) Commission |
(IV) Credit side of Partner's Capital Account |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
| List-I (Item) | Effect on Partner's Account | List-II (Location) |
| (A) Bank (fresh capital introduced) | Increases permanent capital | (IV) Credit side of Partner's Capital Account |
| (B) Interest on drawings | Decreases profit appropriation for the partner | (I) Debit side of Partner's Current Account |
| (C) Bank (permanent withdrawal of capital) | Decreases permanent capital | (II) Debit side of Partner's Capital Account |
| (D) Commission (Share of profit/remuneration) | Increases profit appropriation for the partner | (III) Credit side of Partner's Current Account |