Match the following journal entries passed at the time of preparing Realisation A/c.

1) c, 2) a, 3) b, 4) d

 * If a partner's capital account shows a debit balance (indicating that the partner owes money to the firm), the partner is required to bring in the necessary cash to settle the outstanding amount. The entry for this transaction will be as follows: Bank Account Dr. To Partner's Capital Account
This entry reflects the partner's contribution of cash to cover the debit balance in their capital account. By doing so, the partner fulfills their obligation to the firm and clears the outstanding debt.

*When a firm undergoes dissolution, it is necessary to close its books of account and calculate the profit or loss resulting from the sale of assets and settlement of liabilities. To achieve this, a Realisation Account is prepared, which helps determine the net effect (whether there is a profit or loss) arising from the realization of assets and payment of liabilities. The Realisation Account serves as a transitional account where all assets (excluding cash in hand, bank balance, and fictitious assets, if any) and external liabilities are transferred. The Realisation Account also records the proceeds from the sale of assets, the settlement of liabilities, and any expenses incurred during the process of realization. The final balance in this account represents the profit or loss on realization, which is then transferred to the partners' capital accounts based on their profit sharing ratio. This ensures that the partners receive their share of the realized profit or bear the loss in proportion to their agreed profit distribution.
For transfer of profit- Realisation A/c Dr. To Partners’ Capital A/c (individually) A/c
For transfer of loss -  Partners’ Capital A/c (individually) Dr. To Realisation A/c

* If a partner's capital account shows a credit balance (indicating that the firm owes money to the partner), the firm will pay out the balance to the partner. The entry for this transaction will be as follows:
Partner's Capital Account (individually) Dr. To Bank Account
This entry records the payment made to the partner, effectively settling their capital account and releasing the funds owed to them by the firm.