Match List-I with List-II and choose correct answer: List-I List-II P. Partner’s loan 1. Debit balance of profit and loss Q. Death of a partner 2. 6% interest R. Loss in business 3. Joint life insurance policy S. Revolution account 4. Profit and loss adjustment account

The correct answer is: A. P-2, Q-3, R-1, S-4

• P. Partner’s loan is a loan that a partner makes to the partnership. It is usually treated as an asset of the partnership and is repaid with interest. The interest on a partner’s loan is usually 6%.
• Q. Death of a partner is a significant event in the life of a partnership. When a partner dies, the partnership is dissolved and the assets and liabilities are distributed to the surviving partners.
• R. Loss in business is a decrease in the value of the assets of a business. A loss in business can be caused by a number of factors, such as decreased sales, increased expenses, or damage to property.
• S. Revolution account is an account that is used to record the amount of money that is owed to a partner by the partnership. The revolution account is usually closed at the end of each accounting period and the amount is transferred to the partners’ capital accounts.

Here is a brief explanation of each option:

• Option A: P-2, Q-3, R-1, S-4. This option is correct because it matches the items in List-I with the items in List-II in a logical way. For example, a partner’s loan is usually treated as an asset of the partnership and is repaid with interest. The interest on a partner’s loan is usually 6%. Death of a partner is a significant event in the life of a partnership. When a partner dies, the partnership is dissolved and the assets and liabilities are distributed to the surviving partners. Loss in business is a decrease in the value of the assets of a business. A loss in business can be caused by a number of factors, such as decreased sales, increased expenses, or damage to property. Revolution account is an account that is used to record the amount of money that is owed to a partner by the partnership. The revolution account is usually closed at the end of each accounting period and the amount is transferred to the partners’ capital accounts.
• Option B: P-1, Q-2, R-3, S-4. This option is incorrect because it matches the item “Partner’s loan” with the item “Debit balance of profit and loss”. A partner’s loan is not a debit balance of profit and loss. A debit balance of profit and loss is a loss that the partnership has incurred.
• Option C: P-3, Q-2, R-1, S-4. This option is incorrect because it matches the item “Death of a partner” with the item “Joint life insurance policy”. Death of a partner is not a joint life insurance policy. A joint life insurance policy is a type of insurance policy that pays out a death benefit to multiple beneficiaries.
• Option D: P-4, Q-1, R-2, S-3. This option is incorrect because it matches the item “Revolution account” with the item “Profit and loss adjustment account”. Revolution account is not a profit and loss adjustment account. A profit and loss adjustment account is an account that is used to record adjustments to the profit and loss account.