Match List-I with List-II List-I List-II (A) On dissolution of a firm…

The correct answer is Option (1) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Each item is settled by the journal entry passed for it when the firm is dissolved.

(A) On dissolution of a firm, creditors is transferred to: — this matches (II) Realization Account. Creditors are an external liability, and every external liability is closed by transfer to the credit of the Realisation Account.

(B) Unrecorded liabilities when paid: — this matches (I) Bank account is credited. The entry is Realisation A/c Dr. To Bank A/c; cash goes out of the firm, so the Bank Account is credited.

(C) When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to: — this matches (IV) Partner's Capital Account. The expense is the partner’s own burden, so the firm charges it to his capital account, not to the Realisation Account.

(D) When unrecorded assets are sold — this matches (III) Bank account is debited. The entry is Bank A/c Dr. To Realisation A/c; cash comes into the firm, so the Bank Account is debited.