Match the following list 1 with list 2.

Choose the correct answer from the options given below.

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

The correct answer is option 3- A-IV, B-I, C-III, D-II.

*Surplus- All the revenue items relating to the current period are shown in the income and expenditure account, the expenses and losses on the expenditure side and incomes and gains on the income side of the account. It shows the net operating result in the form of surplus (i.e. excess of income over expenditure) or deficit (i.e. excess of expenditure over income), which is transferred to the capital fund shown in the balance sheet.

*Deficit- All the revenue items relating to the current period are shown in the income and expenditure account, the expenses and losses on the expenditure side and incomes and gains on the income side of the account. It shows the net operating result in the form of surplus (i.e. excess of income over expenditure) or deficit (i.e. excess of expenditure over income), which is transferred to the capital fund shown in the balance sheet.

*Honorarium payment-  Honorarium is a fee for services rendered by a professional person.

*Legacies for Covid-19- Legacy is an amount of money or property left to someone in a will and it is for a specific purpose so it is a liability.