Match List-I and List-II and Select the correct answer: List-I List-II a. Loss in business 1. Profit & Loss Adjustment A/c b. Partner loan 2. Joint Life Policy c. Death of Partners 3. Debit balance of Profit and Loss A/c d. Revaluation A/c 4. 6% Interest A. a-3, b-4, c-2, d-1 B. a-1, b-2, c-3, d-4 C. a-1, b-3, c-4, d-2 D. a-3, b-2, c-1, d-4

The correct answer is: A. a-3, b-4, c-2, d-1

List-I | List-II
——- | ——–
a. Loss in business | Debit balance of Profit and Loss A/c
b. Partner loan | 6% Interest
c. Death of Partners | Joint Life Policy
d. Revaluation A/c | Profit & Loss Adjustment A/c

Explanation:

• A loss in business results in a debit balance in the Profit and Loss Account.
• A partner loan is a loan made by a partner to the partnership. The interest on this loan is usually 6%.
• The death of a partner results in the dissolution of the partnership, unless the partnership agreement states otherwise. In the event of dissolution, the partnership assets are sold and the proceeds are distributed to the partners according to their profit-sharing ratio.
• A revaluation account is used to record the increase or decrease in the value of assets. The profit or loss on revaluation is transferred to the Profit and Loss Account.

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