Match List I with List II.

Choose the correct answer from the options given below :

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

The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I).

* Asset taken over by partner- Partner's capital A/c Dr. To realisation A/c. This journal entry shows that the partner capital account is debited with the asset amount which reduce the capital balance of partners.

* Realisation expenses- Realisation A/c Dr. To cash A/c. This journal entry shows that the realisation expenses are paid by the firm in cash. It reduces the cash balance of the firm.

* Liabilities met by partner- Realisation A/c Dr. To partners capital A/c. This journal entry shows that the partner has paid the liability due to which their capital account is credited with that liability amount. Crediting the amount to the partner will increase the capital balance of the partners.

* Realisation Expenses paid on behalf of partner by firm- Partner's capital A/c Dr. To cash A/c. This journal entry shows that the on behalf of partner, the firm had paid the realisation expenses due to which their account is debited with the amount of realisation expenses. By debiting the partner capital account, their capital balance decreases.